Basically when you reply to one post with a quote, and then go to reply to another, it concatenates your last two posts as it should, but in the process all line breaks are removed.

This is a relatively new thing, it used to work fine.

Yes, I noticed it too and Gabbe mentioned it on one of the threads.It's annoyingThis was three separate posts.

whats causing it? I believe we've had the consolidated posts setting for a while without issues.

Probably some new update that was applied within the last 3 months broke something... I think it started 3 months ago or so. I'm sure IPB knows about this and will probably fix it with the next patch. Maybe check if one is out.