When editing HTML markup in code view, and then clicking update, the changes are lost. However changes are not lost if I toggle back to the wysiwyg after pasting.

looking into this.

this should be corrected in v3.3.0 now. let me know how this works.

I am still experiencing this issue. My current posts won't update and I tried making new posts as well, those won't save either if I use HTML. Here's a video of what happens for me:

http://d.pr/v/1banU