SCAYT breaks code in editor. BUG!

When SCAYT is enabled, content in the CKEditor gets changed, especially with bullet lists. To see what happens...
1. take the following code and put it in the CKEditor demo and switch back to regular view. Everything looks fine.

2.then, enable SCAYT and you will see the bullet sentences get broken into fragments. If you switch back and forth between code view and regular view multiple times you can really mess it up.

What gives?

<ul>
   <li>
      For students completing grades 9, 10, 11, 12</li>
   <li>
      Over 85 college credit &amp; enrichment courses</li>
   <li>
      3+3 Michigan/UCLA 6 Week Combo</li>
</ul>
<p>
   <em>Special pick up/orientation for late arrivals</em></p>
<h4 class="htmlSubHeader">
   Special Programs in:</h4>
<ul class="htmlBigBullets">
   <li>
      Sport ​Management</li>
   <li>
      Business Internships</li>
   <li>
      Screenwriting,</li>
   <li>
      DiscoveryWorks Community Service</li>
   <li>
      Healthy Lifestyle Program</li>
   <li>
      Intensive ESL-TOEFL programs</li>
   <li>
      Sports Plus Program</li>
   <li>
      Intensive Theatre</li>
</ul>
<h3 class="htmlHeader">
   Why UCLA?</h3>
<p>
   Established in 1919, UCLA has evolved into a world renowned research center, as well as one of the world&rsquo;s most ethnically and culturally diverse university communities. This diversity, combined with UCLA&rsquo;s remarkable educational resources, reputation for academic distinction, athletic excellence, spirited student body, and superb location, create an ideal setting for our pre-college enrichment program.</p>