The line terminator is there, it just doesn't render as anything visible. (It's inserted directly as a unicode character, rather than it's HTML-escaped equivalent, so you won't even see it if you view source!)

However, if you take a hex dump of the page, it becomes quite apparent:

https://gist.github.com/4393892

Note: The file is UTF-8 encoded, so you'd be looking for E2 80 A8 instead of \u2028.