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This wiki code

:<math>\foo
x</math>

produces the following HTML output:

<dl><dd><strong class='error'>Failed to parse (unknown function\foo): \foo
</dd></dl>
<p>x</strong>

The tags are incorrectly nested. The cause of this is that the faulty TeX inside
the math tags is replaced with an error message containing the contents of the
tags, which span multiple lines:

:<strong class='error'>Failed to parse (unknown function\foo): \foo
x</strong>

This confuses the code for indenting the paragraph.