Well, this may not be quite what you're looking for, but there are at least two stories that I've seen a Malayalam translation of (and saw the original in only one of those two cases) with a fundamental translation fail. In both cases, I find it highly unlikely that the story would make any sense to a Malayalam-speaker.
One is this story called [fər məˈɾə̃m] in Malayalam. Now, [məˈɾə̃m] means 'tree', but [fər] is not even a word in Malayalam. I had to think about it to realize that what they meant was "The Fir Tree" (fir trees do not exist in Kerala).
And there are some crucial words here whose translation was changed. It seems pretty clear that the original (in Russian, although more likely, it was translated to English and only then to Malayalam)
was about some kids making a snowman to send Santa Claus a letter asking for a fir tree for New Year's Day. But (as you might guess) there are fundamental problems with translating this. How do you say "snowman" in Malayalam? Or "Santa Claus"? (Or "fir tree"?
So in Malayalam, they translated 'snow' using the word for 'dew' (or 'fog'). So these kids get together and make a man out of dew, then they form a circle around him singing, "Dew man, dew man!"
And then he has to send a letter to Grandpa Dew asking for a [fər] tree, whatever the hell that may be.
The other one, for which I have the original, is a comic where Donald Duck and his nephews go to Mexico to watch the Running of the Bulls (which is not in Mexico anyway, but oh well
). Donald is impatient to get to the town where this event is taking place and finds out that a piñata
factory makes a delivery there; unfortunately, his impatience makes him end up inside a piñata. There are probably many people on this forum who have no idea what a piñata is, let alone the poor translator, who tried to omit the word "piñata" whenever possible (so e.g. "the piñata factory" -> "that factory").
However, there's one part where there's a sign off to the side saying "Piñatas For Sale." How to translate that? Obviously, you can't just leave "piñata" out in that
context! So I think he guessed that maybe "piñata" had something to do with peanuts
and wrote the Malayalam equivalent of "Peanuts For Sale."