buffering.c: Fix oopses with caching handle pointer
The location of the handle cannot be kept across calls to
shrink_handle() since it may move the structure. The error was
there in one place at the inception, corrected, then reintroduced.
Make shrink_handle() return the new location and use it, which
makes the side effects of the function clearer.
Change-Id: Icae6a0ad6f7bb0d6645b044cccfa4aef88db42ad