Recent updates have caused the outline property used to add border styling to the blog module to create extra space above the post image.

To fix this, find this section of CSS in the stylesheet:

/*Blog module*/

.ds-home-blog .et_pb_post {
    position: relative;
    border: 1px solid #bef6f2 !important;
    outline: 5px solid #defaf8 !important;
    -webkit-box-shadow: rgba(0, 0, 0, 0.2) -55px 65px 65px -35px;
    box-shadow: rgba(0, 0, 0, 0.2) -55px 65px 65px -35px;
}

And replace it with this:

/*Blog module*/

.ds-home-blog .et_pb_post {
    position: relative;
    border: 1px solid #bef6f2 !important;
    /*outline: 5px solid #defaf8 !important;*/ /*Removed 20/02/18*/
    -webkit-box-shadow: rgba(0, 0, 0, 0.2) -55px 65px 65px -35px;
    box-shadow: rgba(0, 0, 0, 0.2) -55px 65px 65px -35px;
}


/*Added 20/02/18*/
.ds-home-blog .et_pb_post * {
    position: relative;
}


/*Added 20/02/18*/
.ds-home-blog .et_pb_post:before {
    content: '';
    outline: 5px solid #defaf8 !important;
    outline-offset: 1px;
    position: absolute;
    top: 0;
    left: 0;
    right: 0;
    bottom: 0;
}

You will need to update your colours if you have changed them from the theme colours.

Applies to V1.1, fixed in V1.2