Subspecies ID doesn't change the observation ID like leading IDs of other ranks

When I add a subspecies ID to an observation that’s currently at subgenus or higher, my ID doesn’t change the title of the observation like it normally would if I were to add a species ID.

For example:

Is there a reason behind that?

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Yes, it’s because people don’t want things that are Research Grade at species to get knocked back to Needs ID if a single subspecies ID is applied. See more here:

Is there any possibility that the algorithm could be tweaked to bump things ID’d to subspecies to at least species level? Right now the algorithm is just ignoring certain ID’s, which leaves a lot of observations at a much higher taxon than they could be.

Yep that’s what Jane was proposing in the linked feature request; the staff commented on it if you want to take a look.