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On a test case <ul> <li>first</li> <li>second[]</li> </ul> calling myExecCommand('indent') in the js testing implementation results in <ul> <li>first</li> <ul> <li>second[]</li> </ul> </ul> while I would expect <ul> <li>first <ul> <li>second[]</li> </ul> </li> </ul> Most browsers follow the suit as do the editors built using the api except wysiwym and ckeditor that reimplement the indent commad to create the tree with the nesting according to my expectations. I am not that fluent with debugging specs so it is hard for me to tell if the problem is only in the myExecCommand implementation or in the spec.
Yes, the editing spec currently makes lists direct children of other lists without <li> in between. IIRC, this matches browsers, despite being invalid according to HTML.