Well, Hayastan (Armenia) is located just south of the border of what is commonly considered Europe (geographically), but the country leans politically more towards Europe than Asia. Anyway, I expect the BuzzerBeater geography to follow FIBA. I don't know where Hayastan belongs in their system, but they are European for example according to UEFA/FIFA.
In any case, this is not a bug. Hayastan is where it is by design.