diff --git a/libs/squire-raw.mjs b/libs/squire-raw.mjs
index 827fe4a2bcdb..fecf8c3a6688 100644
--- a/libs/squire-raw.mjs
+++ b/libs/squire-raw.mjs
@@ -451,13 +451,14 @@ var fixCursor = (node) => {
 				fixer = document.createTextNode("");
 			}
 		}
-	} else if (node instanceof Element && !node.querySelector("BR")) {
+	} else if ((node instanceof Element || node instanceof DocumentFragment) && !node.querySelector("BR")) {
 		fixer = createElement("BR");
 		let parent = node;
 		let child;
 		while ((child = parent.lastElementChild) && !isInline(child)) {
 			parent = child;
 		}
+		node = parent;
 	}
 	if (fixer) {
 		try {
@@ -1313,6 +1314,7 @@ var insertTreeFragmentIntoRange = (range, frag, root, config) => {
 	}
 	if (blockContentsAfterSplit && block) {
 		const tempRange = range.cloneRange();
+		fixCursor(blockContentsAfterSplit);
 		mergeWithBlock(block, blockContentsAfterSplit, tempRange, root);
 		range.setEnd(tempRange.endContainer, tempRange.endOffset);
 	}
@@ -1864,10 +1866,13 @@ var Space = (self, event, range) => {
 			const text = block.textContent?.trimEnd().replace(ZWS, "");
 			if (text === "*" || text === "1.") {
 				event.preventDefault();
+				self.insertPlainText(" ", false);
+				self._docWasChanged();
+				self.saveUndoState(range);
 				const walker = new TreeIterator(block, SHOW_TEXT);
 				let textNode;
 				while (textNode = walker.nextNode()) {
-					textNode.data = cantFocusEmptyTextNodes ? ZWS : "";
+					detach(textNode);
 				}
 				if (text === "*") {
 					self.makeUnorderedList();
@@ -1900,41 +1905,12 @@ var Space = (self, event, range) => {
 };
 
 // source/keyboard/KeyHandlers.ts
-var keys = {
-	8: "Backspace",
-	9: "Tab",
-	13: "Enter",
-	27: "Escape",
-	32: "Space",
-	33: "PageUp",
-	34: "PageDown",
-	37: "ArrowLeft",
-	38: "ArrowUp",
-	39: "ArrowRight",
-	40: "ArrowDown",
-	46: "Delete",
-	191: "/",
-	219: "[",
-	220: "\\",
-	221: "]"
-};
 var _onKey = function (event) {
-	const code = event.keyCode;
-	let key = keys[code];
-	let modifiers = "";
-	const range = this.getSelection();
-	if (event.defaultPrevented) {
+	if (event.defaultPrevented || event.isComposing) {
 		return;
 	}
-	if (!key) {
-		key = String.fromCharCode(code).toLowerCase();
-		if (!/^[A-Za-z0-9]$/.test(key)) {
-			key = "";
-		}
-	}
-	if (111 < code && code < 124) {
-		key = "F" + (code - 111);
-	}
+	let key = event.key;
+	let modifiers = "";
 	if (key !== "Backspace" && key !== "Delete") {
 		if (event.altKey) {
 			modifiers += "Alt-";
@@ -1953,11 +1929,10 @@ var _onKey = function (event) {
 		modifiers += "Shift-";
 	}
 	key = modifiers + key;
+	const range = this.getSelection();
 	if (this._keyHandlers[key]) {
 		this._keyHandlers[key](this, event, range);
-	} else if (!range.collapsed && // !event.isComposing stops us from blatting Kana-Kanji conversion in
-			// Safari
-			!event.isComposing && !event.ctrlKey && !event.metaKey && (event.key || key).length === 1) {
+	} else if (!range.collapsed && !event.ctrlKey && !event.metaKey && key.length === 1) {
 		this.saveUndoState(range);
 		deleteContentsOfRange(range, this._root);
 		this._ensureBottomLine();
@@ -1970,7 +1945,7 @@ var keyHandlers = {
 	"Delete": Delete,
 	"Tab": Tab,
 	"Shift-Tab": ShiftTab,
-	"Space": Space,
+	" ": Space,
 	"ArrowLeft"(self) {
 		self._removeZWS();
 	},
@@ -2742,22 +2717,26 @@ var Squire = class {
 	 * Leaves bookmark.
 	 */
 	_recordUndoState(range, replace) {
-		if (!this._isInUndoState || replace) {
-			let undoIndex = this._undoIndex;
+		const isInUndoState = this._isInUndoState;
+		if (!isInUndoState || replace) {
+			let undoIndex = this._undoIndex + 1;
 			const undoStack = this._undoStack;
 			const undoConfig = this._config.undo;
 			const undoThreshold = undoConfig.documentSizeThreshold;
 			const undoLimit = undoConfig.undoLimit;
-			if (!replace) {
-				undoIndex += 1;
-			}
 			if (undoIndex < this._undoStackLength) {
 				undoStack.length = this._undoStackLength = undoIndex;
 			}
 			if (range) {
 				this._saveRangeToBookmark(range);
 			}
+			if (isInUndoState) {
+				return this;
+			}
 			const html = this._getRawHTML();
+			if (replace) {
+				undoIndex -= 1;
+			}
 			if (undoThreshold > -1 && html.length * 2 > undoThreshold) {
 				if (undoLimit > -1 && undoIndex > undoLimit) {
 					undoStack.splice(0, undoIndex - undoLimit);
@@ -2925,6 +2904,7 @@ var Squire = class {
 			let doInsert = true;
 			if (isPaste) {
 				const event = new CustomEvent("willPaste", {
+					cancelable: true,
 					detail: {
 						fragment: frag
 					}
@@ -3028,6 +3008,7 @@ var Squire = class {
 			let doInsert = true;
 			if (isPaste) {
 				const event = new CustomEvent("willPaste", {
+					cancelable: true,
 					detail: {
 						text: plainText
 					}
diff --git a/package-lock.json b/package-lock.json
index 8b969c588bea..ef593126b9c3 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -38,7 +38,7 @@
 				"mithril": "2.2.2",
 				"pako": "2.1.0",
 				"qrcode-svg": "1.0.0",
-				"squire-rte": "2.2.5",
+				"squire-rte": "2.2.7",
 				"systemjs": "6.10.2",
 				"undici": "6.6.2",
 				"winreg": "1.2.4"
@@ -9800,9 +9800,9 @@
 			"devOptional": true
 		},
 		"node_modules/squire-rte": {
-			"version": "2.2.5",
-			"resolved": "https://registry.npmjs.org/squire-rte/-/squire-rte-2.2.5.tgz",
-			"integrity": "sha512-qxG8CdH9haEufK5Nn7KcoixJb5UwEtmqMiFZ5+VLUpNrvSVm0PLIkoiLKS5Z0A2/w8pWvKHSTI2Gsijg9xl4Og=="
+			"version": "2.2.7",
+			"resolved": "https://registry.npmjs.org/squire-rte/-/squire-rte-2.2.7.tgz",
+			"integrity": "sha512-BUMRrqnckM+hV3lwjajcckViS1aKgYFImA3Sjctygsln7f7DXILsYj7SOEdgJgNkTDGMBVkKIkTs0v0wOj2VrQ=="
 		},
 		"node_modules/ssri": {
 			"version": "10.0.5",
diff --git a/package.json b/package.json
index daa454deca47..a9c0600ec39c 100644
--- a/package.json
+++ b/package.json
@@ -56,7 +56,7 @@
 		"luxon": "3.4.4",
 		"mithril": "2.2.2",
 		"qrcode-svg": "1.0.0",
-		"squire-rte": "2.2.5",
+		"squire-rte": "2.2.7",
 		"systemjs": "6.10.2",
 		"undici": "6.6.2",
 		"winreg": "1.2.4",