Confluence removing newlines in the wiki markup which creating formatting/display problems.

Problematic pattern:

# (x) {color:gray}List Item{color}
## {color:gray}Sub-list Item{color}

After editing another portion of the page, the wiki markup above automatically becomes the following:

# (x) {color:gray}List Item{color}## {color:gray}Sub-list Item{color} 

This causes issues with the display by hiding the sub-list item. This issue occurs in Chrome and in Firefox.