There is a bug in vte that has existed for a long time. I finally got annoyed enough to have a GNOME person involved with vte fix it and they did it in short order. The problem involves cutting and pasting and converting blank lines to all spaces. The patch I will attach in a minute can be applied to 0.11.10 and 0.11.10-r1 and it will fix the problem.
Created attachment 29843 [details, diff] Patch to fix the cut-and-paste problem
Comment on attachment 29843 [details, diff] Patch to fix the cut-and-paste problem Aak! I sent the wrong patch. Ignore this one!
Created attachment 29846 [details, diff] This patch is the one that fixes the cut-and-paste bug.
sorry this took a while i added 0.11.11, which incorporates this patch & that fixes this bug. In the future we'll try to add these little fixes sooner, thanks for the report.