RTE - Paste into a code block lose the line orientation

In the Rich Text editor is has problems changing lines of text into code and preformatted sections.

The lines are lost and 1 big single line is put in the code section. It only seems to happen when you have cerate a fresh code section without any lines in it already.

Steps to reproduce:

1. Type some lines of text into the RTE (Typically this a a copy of past of some other line data)
2. Now select the text and apply code/preformatted to it

Now the text is one big long line and is readable only to lexical analysers!