Major Bug: Replacing an &#foo; deletes content without replacing

[danpal]

I was trying to search replace some text that started with &#, unfortunately for me I didn't notice but textmate didn't replace anything, just deleted the text, and I lost a bunch of data.

Repro:
Create a new doc and write &foo
Do search and replace for ò and replace with x.
A blank space is put instead of an x.

[danpal]

The repro above didn't come out well.
Repro:
Create new doc and write &foo
do search and replace-all &foo for x, but do replace all, if you do replace it seems to do the right thing.