New list item gets stranded when outdenting in IE

Steps to reproduce

1. Create a bullet list like so

• Parent 1
  • Child 1.1
  • Child 1.2
• Parent 2
  • Child 2.1
  • Child 2.2

1. Attempt to add a new child item or parent item between existing list items

E.g.

• Parent 1
  • Child 1.1
  • Child 1.2
• Parent 2
  • Child 2.1
    **
  • Child 2.2

If the user attempts to outdent the new item, it will become stranded and the user will not be able to place the cursor on this point via keyboard or mouse.