Your comments

Hello,

I just tried it out and it does work for me. Textastic does correctly replace two spaces. I also searched for a space and a word and it also found it.

Maybe you can give me some more details how your file looks and what exactly you searched for. 
Textastic supports TextExpander touch. This allows you to create custom snippets: http://www.smilesoftware.com/TextExpander/touch/
Can't you open it at all or is there just no syntax highlighting?
Hi, minified files are basically just one line of code. If you change one character in this line, Textastic has to highlight and relayout this line due to how the syntax highlighter works.

I don't recommend editing minified files with Textastic.
Can you please send me the relevant crash reports?

Here's how to do that: http://feedback.textasticapp.com/topic/48133-how-do-i-send-crash-reports/
I plan to make this configurable in an update.
Currently it's not possible to deactivate the indentation of wrapped lines. You can disable line indentation however.

I thinks indendation of wrapped lines makes long lines much more readable, especially with code. It may be different if you use it mainly for Markdown though.