Indentation is mseed up

I think indentation used to be working on this site but now all of my posts end up being one big paragraph. For example, let me try typing a shopping list here. You'll know indentation is still messed up if this all appears without any new lines:1) Milk2) Bread3) Juice4) Beer

That's not indentation, that's line breaks, but yeah, this has been reported in another thread.