A workaround for now is to disable KMS.

sudo echo options radeon modeset=0 > /etc/modprobe.d/radeon-kms.conf

For some users (particularly users with encrypted volumes) KMS is
enabled very early in the boot process and in order to pick up these
changes you also need to run sudo update-initramfs -u.

Then reboot.

-- 
[rs690m] Graphics corruption with ati x1200
https://bugs.launchpad.net/bugs/556782
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