I have this machine, and when I use the thread cutter, I can't even see the bobbin thread sticking up out of the needle hole, so I'm wondering what you mean about 1/8" long. If I need thread tails, I don't use the cutter.
If I've used the cutter, and then for some reason I need the bobbin thread pulled up, I sew on a scrap for 1/2" or so, and then pull it away and cut the thread manually.