Placing styles in two paragraphs in wysiwyg editor causes line breaks to be lost (compacting paragrphs)

Type

Text on first line

Test on second line

Change styles for one word on line 1 and another word on line 2
Switch to wysiwyg and come back. The 2 paragraphs are merged.

Alternative example:

Type the following in the wysiwyg syntax and switch to wysiwyg

Paragraph 1 with {style:type=span|font-size=36px}some{style} text.

Paragraph 2 {style:type=span|font-size=18px}with{style} more text.