Applying the 'code' style doesn't work as expected

Selecting some text and trying to apply the "code" style from the text type drop down completely breaks the look of the editor:

• The whole content suddenly looks gray-ish with stripes (the Toucan backgroud)
• The selected text is mixed around the content
• The final syntax is NOT placed inside the code macro, it is wrapped in {style:type=div} macros
  
  For example, entering 8 lines of text (numbered ascending), selecting lines 4-7, and applying 'code' style, resulted in:
  

  1 first line
  
  3 third line
  5 fifth line
  7 sevent line
  
   
  
  2 second line
  4 fourth line
  6 sixth line
  
  8 eight line
  

  
  
  which in wiki code is:
  
  1 first line
  
  3 third line {style:type=div}5 fifth line{style} {style:type=div}7 sevent line{style}

  
  

2 second line

<p>8 eight line
</pre>