Yes. This is reproducible using the test page.
Here are the steps:
1. Go into word, and type the following:
-------------- start of original spacing -----------------
This is a test here is a return return.
Here’s another return.
Here’s another return.
-------------- end of original spacing -----------------
2. Paste it (Paste as Word) into Cute Editor using demo page.
3. Go to view source of Cute Editor. Grab the source (it looks like the following):
---------------- start of source --------------
<p>This is a test here is a return return.</p>
<p> </p>
<p>Here’s another return.</p>
<p>Here’s another return.</p>
<div></div>
---------------- end of source --------------
4. I save this source code in notepad.exe as a test.html.
5. Open the test.html in Internet Explorer. The one space now becomes three spaces.