Regression: Images are inserted twice upon saving and text below is lost

Media 7.x-2.0-alpha1 introduces a regression that will sometimes replace text after an image with the image itself, leading to the image appearing twice and the text after the image being lost. This happens after the node is saved.

Example content for node:

<p>blah blah blah</p>
<p>Some image inserted here</p>
<p>More blah blah blah</p>

This resulted in the following:

<p>blah blah blah</p>
<p>Some image inserted here</p>
<p>Some image inserted here</p>

This bug appeared after I upgraded to alpha1. Downgrading to unstable7 solves the problem.