Is Draw automatic in this situation?

Not a loophole in the program. Draw by repetition is in the "Laws of chess".

See 9.2 "The game is drawn, upon a correct claim by the player having the move, when the same position, for at least the third time (not necessarily by a repetition of moves)"

So if Ka3 has been occupied three times and either player requests a draw is it automagic by the computer? How does it work? Is this quote "complete" http://www.chess.com/forum/view/help-support/game-draw-for-repitition

Well as the rule that you copied and pasted says, it has to be a repetition of the exact same position, not necessarily the move. If the position has been repeated 3 times, and you (or your opponent) clicks on the offer draw button (supposedly it changes to claim draw), then the game automatically ends in a draw. 

ok ... so I was in a losing position and clicked request draw ... it did not change to claim draw ... it's still my turn to play but I cannot move -- there is a message  "You have a pending draw offer." ... is there anyway to resume the game? Or is resign my only alternative

Can you please post the link to the game so that I can take a look and see what the case is.

Your game is not drawn, since your opponent made different moves. If it were like this:

27. Ka3, Kh8. 28 Kb1, Kg8. 29 Ka3, Kh8.

It would have been a draw.

Thanks for your response sebas4life ... I think that clears it up but wouldn't the ka3,kh8 combo be required three times (based on responses above and my research). What's really ugly ;-) is having issued a "phony draw" I can't resume the game. Support is looking into that. It seems like there ought to be a way to "reject a draw" or "take it back" ... shucks I might still be able to win this game (although not likely).

I put a link to the game in that last post and it went away ... try this:

The game in question

 Hi

It seems to be that the problem was simply that you miunderstood the law about when a draw occurs. It is the same position occuring three times not simply the king going to a3 three times. If you then offered a draw that was your choice, but seemingly based on a misunderstanding on your part. Black would be unlikely to accept a draw anyway being well ahead.

well stated