To reproduce:
1. cut the following command:
echo 'hello
world'
2. M-x shell
3. paste and hit return
4. see the following echoed:
hello
world
5. C-x k (kill shell)
6. M-x shell
7. M-p (yank back last command)
8. see that you only get:
world'
9. M-p (yank again)
10. see that you only get:
echo 'hello
Doing this in bash, I get the same result because it saves multi-line
commands on separate lines in ~/.bash_history and reads each line as
a separate command. Why should Emacs be different in this regard?