dnsmasq returns 127.0.0.1 for lookup itself

Question

This is a follow up to the question, Ping to dnsmasq's host resolvesto 127.0.0.1, because that answer doesn't work for me. It should work -- I found another one having the same answer: https://bugzilla.redhat.com/show_bug.cgi?id=470391

In both above cases, the cause was having dnsmasq's hostname listed as 127.0.0.1 in the /etc/hosts file. But mines doesn't:

$ head -2 /etc/hosts
127.0.0.1       localhost.localdomain           localhost
192.168.2.100   jupiter.myhost.dyndns.org       jupiter

but dnsmasq's hostname is still resolved as 127.0.0.1:

$ nslookup jupiter 
Server:         192.168.2.100
Address:        192.168.2.100#53

Name:   jupiter
Address: 127.0.0.1

What's wrong?

Update:

I'm using dnsmasq as my DNS server, and I didn't put any configuration regarding dnsmasq's hostname in dnsmasq's configuration. So, regarding the A record, this is all that I know:

$ dig jupiter 

; <<>> DiG 9.9.3-rpz2+rl.13214.22-P2-Ubuntu-1:9.9.3.dfsg.P2-4ubuntu1 <<>> jupiter
;; global options: +cmd
;; Got answer:
;; ->>HEADER<<- opcode: QUERY, status: NOERROR, id: 28464
;; flags: qr aa rd ra ad; QUERY: 1, ANSWER: 1, AUTHORITY: 0, ADDITIONAL: 0

;; QUESTION SECTION:
;jupiter.                         IN      A

;; ANSWER SECTION:
jupiter.                  0       IN      A       127.0.0.1

;; Query time: 1 msec
;; SERVER: 192.168.2.100#53(192.168.2.100)
;; WHEN: Wed Jan 15 22:39:19 EST 2014
;; MSG SIZE  rcvd: 39