Alright, the issue ended up being with my read function. It was defined as this:
01.this.getMarkets = function(e) {02. marketService.getMarkets($stateParams.nodeId).then(function(data) {03. varcontent = angular.element('#dataInputMarkets');04. varscope = content.scope();05. scope.marketsDataInputController.safeApply(function() {06. self.markets = newkendo.data.ObservableArray(data.markets);07. e.success(self.markets);08. });09. }, self.errorHandler);10.};
Notice, on line 6, that I am turning the returned results into a new ObservableArray. If I remove this logic, then the cancel button works as expected. The revised function is thus:
01.this.getMarkets = function(e) {02. marketService.getMarkets($stateParams.nodeId).then(function(data) {03. varcontent = angular.element('#dataInputMarkets');04. varscope = content.scope();05. scope.marketsDataInputController.safeApply(function() {06. self.markets = data.markets;07. e.success(self.markets);08. });09. }, self.errorHandler);10.};