sun.net.spi.DefaultProxySelector converts patterns for non-proxy urls to lower case. Pattern is always lowercased but urls it matched against are always treated literally. That leads to a peculiar behavior when DefaultProxySelector tries to determine whether a proxy should be used to access a given url. It's neither case sensitive nor case insensitive (meanwhile RFC 4343 says domains should be treated in case insensitive manner).
Investigate the reasons behind this behavior in DefaultProxySelector and fix it if appropriate.