most defiantly not. what you have is reg creep, unfortunately the mini reg is not really serviceable but there are a few things we can try, and bare with me, im doing this all from memory
one question, does the pressure continue to increase over 200 or does it stop there?
on the front of your reg you have the hole for your allen wrench to go through and adjust the regulator, that hole is actually on a cap. there is a set screw either on top or the bottom of the reg that you need to remove first before twisting the cap off. take the cap off and remove the brass adjuster nut. i dont remember if there is an o-ring on it or not but if there is, replace it. i would put a few wraps of teflon tape around the brass screw and put it back in (just a bit, not all the way) what you have to do to get the reg back to where it was is a little strange. once you have the brass screw in a little, thread the cap on just a bit, then screw your tank in, dont worry, with the cap off the regulator will be shut down. screw the cap on untill you see the pressure starting to come in on the gauge, then stop and screw the set screw back in. from there, adjust the pressure using your brass set screw like usual and see if that solves your issue
unfortunately for you though since the rest of the regulator including the main seal is un-servisable if this does not work you will probably have to send the marker off to empire to be fixed
Everything, and I mean EVERYTHING, that makes a firearm better makes a paintball marker worse. They are 2 very different worlds with nothing except a trigger in common