So it should be working? Yes, tried refresh, browser restart, on both production and development webservers.
I tried a long text post in profile blog ( just shows a link in the newsfeed) , and I also tried a long text post on the Activity Feed. Same problem.
Attached text that works fine on the Group Wall. Also attach the Feed Post. ( The posts were in UNIX and contained no CR's - converted to DOS format for txt file ).
In both cases, if I change ( in browser dev tool) "cbMoreLessOpened" to "cbMoreLessClosed" , and Content style="max-height: 100px;" and remove "hidden" from fade-edge classes, it works like expected.