My fuel gauge acted similarly a few weeks ago although mine shot up to nearly 4 o'clock (WAY past full) and wouldn't go back to where it should be (which was at full).
A few days later my car wouldn't start as a result of the battery cables having too much corrosion on them where they connect to the battery posts. A loose connection or any other kind of resistance between the battery cables and the battery itself could cause a similar reaction.
Even if you snugged those cables up to the posts, get in there with a wrench and tighten the crap out of them. It takes a good solid connection for them to work properly.

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Black 2005 Mustang v6, 5 speed, IUP, EUP and Leather.
Razzi 1/4 window scoops, Mustang GT Sway Bars, Flowmaster American Thunder Single Exhaust, Clear Front Turn Signal Lenses, Demolet CAI, X-cal2 91 tune, Hurst Comp/Plus Shifter, FRPP T-Lock, Ford 3.73 gears