I think Daniel is right and you are passing in the coordinates like we've always been told, lat/lon. I commonly make this mistake. Latitude actually measures the Y-axis, while longitude is the x-axis. When creating a point with RGeo, the signature is actually POINT(lon, lat). The -85.05 part is a result of latitude only ranging from -90 to +90 and you are providing a value of -122.96, which is an illegal latitude, but -79.42 is a legal value.
Try to reverse the coordinates and do new_point = factory.point(-122.964657378, 49.261569868) and new_point = factory.point(-79.425659, 43.658931) and you should get the results you expect.
To convince yourself that the way you are entering the points now is backwards, check the distance between the 2 points. point1.distance(point2). It won't be anywhere near what it should be.
I've made this mistake of lat/lon too many times to count.
Hope that helps,
Tyler