Permission denied in on line 164

After update to 5.x-1.4, and changed size on one of the presets I got this:

Permission denied in /../../../modules/imagecache/imagecache.module on line 164.

Its seems like:

$mask = umask(0);
mkdir($p, 775);
umask($mask);

is problematic even if the permissions of the sub files dir are 755

So I chnaged it back to

mkdir($p);

and now it works