I don't know if it's too much to ask, but since I can't seem to reproduce it so far, it would help immensely if I could see how exactly you are using the app when it happens. So, if you happen to have a video/screen recording of the bug, that would be great.

Could you send me the files to support@textasticapp.com? Can you currently reproduce it with a different index.html file?

I've tried to do what you wrote about ten times now. It didn't happen on my device.

Which iPad model and iOS version are you using?

Does it happen every time?

Sorry, but I'm using too many new APIs that were introduced in 10.7/Lion.

Good point. I'll see what I can do.

It's not implemented yet. I'll add it in an update. Thanks for letting me know!

Unfortunately that's a limitation of the syntax highlighter. It only ever looks at one line at a time. So in the case of "---" it would have to mark the previous line as a headline. That's not supported by TextMate's syntax definitions.

I recommend to use "#" for headlines.