Yes my question also exactly. I rang our administrator yesterday as I tried to correct it and when I go into the edit facility it shows up how you would've first set it out (which incidentally I thought was really good) and when I had a crack it reverted straight back to how it currently appears, all compressed up.
I do not see any compression of paragraphs.
The best approach is a screen capture of what you view - to see the issue!
A new paragraph should be formed with every two enter keys.
We need more information here.
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Jackp.s. after the quote, I have created two paragraphs.