Also had this issue- existed in various areas of the map and in all standing, crouching and prone positions. Zoomed in fully and minimally- doesn't matter. Can view side to side (only when free view is off)- but no vertical movement is possible.

In particular- this was the scope that had 2x - 8x zoom functions. The scope I was using was not pristine- I think it was damaged. Not sure what effect this would have if any.

Same Issue
http://feedback.dayzgame.com/view.php?id=20196

Thank you for your feedback, acdcrockme.
This has been scheduled for a fix.
Regards,
Andy

Hi,
this should be fixed after the next patch.
Thanks,
Andy