diff --git a/src/vs/base/common/htmlContent.ts b/src/vs/base/common/htmlContent.ts
index 7272e813245797da9b36a4c66dafaa274c1e9a9b..829a3480092173eb35be2a0b58c5e2412a9b2070 100644
--- a/src/vs/base/common/htmlContent.ts
+++ b/src/vs/base/common/htmlContent.ts
@@ -49,7 +49,7 @@ export class MarkdownString implements IMarkdownString {
 		// escape markdown syntax tokens: http://daringfireball.net/projects/markdown/syntax#backslash
 		this.value += (this.supportThemeIcons ? escapeCodicons(value) : value)
 			.replace(/[\\`*_{}[\]()#+\-.!]/g, '\\$&')
-			.replace(/^([ \t]+)(.+)$/gm, (_match, g1, g2) => ' '.repeat(g1.length) + g2)
+			.replace(/([ \t]+)/g, (_match, g1) => ' '.repeat(g1.length))
 			.replace(/^>/gm, '\\>')
 			.replace(/\n/g, newlineStyle === MarkdownStringTextNewlineStyle.Break ? '\\\n' : '\n\n');
 
diff --git a/src/vs/base/test/browser/markdownRenderer.test.ts b/src/vs/base/test/browser/markdownRenderer.test.ts
index 170f1935c09a85afc515680b0b7e2ba5fe2f0be0..f4bfa18d1c7807160cebe82ae8aa4cbb2a4bc55b 100644
--- a/src/vs/base/test/browser/markdownRenderer.test.ts
+++ b/src/vs/base/test/browser/markdownRenderer.test.ts
@@ -57,7 +57,7 @@ suite('MarkdownRenderer', () => {
 			mds.appendText('$(zap) $(not a theme icon) $(add)');
 
 			let result: HTMLElement = renderMarkdown(mds);
-			assert.strictEqual(result.innerHTML, `<p>$(zap) $(not a theme icon) $(add)</p>`);
+			assert.strictEqual(result.innerHTML, `<p>$(zap)&nbsp;$(not&nbsp;a&nbsp;theme&nbsp;icon)&nbsp;$(add)</p>`);
 		});
 
 		test('render appendMarkdown', () => {
@@ -85,7 +85,7 @@ suite('MarkdownRenderer', () => {
 			mds.appendText('$(zap) $(not a theme icon) $(add)');
 
 			let result: HTMLElement = renderMarkdown(mds);
-			assert.strictEqual(result.innerHTML, `<p>$(zap) $(not a theme icon) $(add)</p>`);
+			assert.strictEqual(result.innerHTML, `<p>$(zap)&nbsp;$(not&nbsp;a&nbsp;theme&nbsp;icon)&nbsp;$(add)</p>`);
 		});
 
 		test('render appendMarkdown with escaped icon', () => {
diff --git a/src/vs/base/test/common/markdownString.test.ts b/src/vs/base/test/common/markdownString.test.ts
index a76c30f2cc57c2fc4aca485760943fb57da03851..424c2bd46730769bfbf023b7723b0a6a4db867f6 100644
--- a/src/vs/base/test/common/markdownString.test.ts
+++ b/src/vs/base/test/common/markdownString.test.ts
@@ -11,13 +11,13 @@ suite('MarkdownString', () => {
 	test('Escape leading whitespace', function () {
 		const mds = new MarkdownString();
 		mds.appendText('Hello\n    Not a code block');
-		assert.equal(mds.value, 'Hello\n\n&nbsp;&nbsp;&nbsp;&nbsp;Not a code block');
+		assert.equal(mds.value, 'Hello\n\n&nbsp;&nbsp;&nbsp;&nbsp;Not&nbsp;a&nbsp;code&nbsp;block');
 	});
 
 	test('MarkdownString.appendText doesn\'t escape quote #109040', function () {
 		const mds = new MarkdownString();
 		mds.appendText('> Text\n>More');
-		assert.equal(mds.value, '\\> Text\n\n\\>More');
+		assert.equal(mds.value, '\\>&nbsp;Text\n\n\\>More');
 	});
 
 	test('appendText', () => {
@@ -25,7 +25,7 @@ suite('MarkdownString', () => {
 		const mds = new MarkdownString();
 		mds.appendText('# foo\n*bar*');
 
-		assert.equal(mds.value, '\\# foo\n\n\\*bar\\*');
+		assert.equal(mds.value, '\\#&nbsp;foo\n\n\\*bar\\*');
 	});
 
 	suite('ThemeIcons', () => {
@@ -36,7 +36,7 @@ suite('MarkdownString', () => {
 				const mds = new MarkdownString(undefined, { supportThemeIcons: true });
 				mds.appendText('$(zap) $(not a theme icon) $(add)');
 
-				assert.equal(mds.value, '\\\\$\\(zap\\) $\\(not a theme icon\\) \\\\$\\(add\\)');
+				assert.equal(mds.value, '\\\\$\\(zap\\)&nbsp;$\\(not&nbsp;a&nbsp;theme&nbsp;icon\\)&nbsp;\\\\$\\(add\\)');
 			});
 
 			test('appendMarkdown', () => {
@@ -61,7 +61,7 @@ suite('MarkdownString', () => {
 				const mds = new MarkdownString(undefined, { supportThemeIcons: false });
 				mds.appendText('$(zap) $(not a theme icon) $(add)');
 
-				assert.equal(mds.value, '$\\(zap\\) $\\(not a theme icon\\) $\\(add\\)');
+				assert.equal(mds.value, '$\\(zap\\)&nbsp;$\\(not&nbsp;a&nbsp;theme&nbsp;icon\\)&nbsp;$\\(add\\)');
 			});
 
 			test('appendMarkdown', () => {