I can confirm this.
Current behavior: with hotkeys , Ctrl+Shift+Down
Windows7, Obsidian 0.9.2, Smart indentation ON.
With five line text:
1a
2b
3c
4d
5e
Hotkey Ctrl+Shift+Up bound to “Swap line up” with caret in line “4d”:
- Behaves as Shift+Up (i.e. selects also portion of line above).
- And then swaps [lines involved in selection] with [line above selection].
results in:
1a
3c
4d
2b
5e
with text “c\n4” being selected (\n meaning line wrap).
Hotkey Ctrl+Up bound to “Swap line up” with caret in line “4d”:
- Behaves as Up, i.e. caret moves to line above (“3c”).
- And then swaps the line “3c” with line above (“2b”).
1a
3c
2b
4d
5e
Swapping down with caret in line “2b” behaves equivalently, i.e. as if Shift+Down or Down precedes swapping lines.
This applies to caret in the middle or the end of line, caret at line beginning is exception not analyzed in detail here.
Edit: related issue during clicking links: