diff --git a/changelog b/changelog
--- a/changelog
+++ b/changelog
@@ -1,3 +1,8 @@
+pandoc (1.12.2.1)
+
+  * Markdown reader:  Fixed regression in list parser, involving
+    continuation lines containing raw HTML (or even verbatim raw HTML).
+
 pandoc (1.12.2)
 
   * Metadata may now be included in YAML blocks in a markdown document.
diff --git a/pandoc.cabal b/pandoc.cabal
--- a/pandoc.cabal
+++ b/pandoc.cabal
@@ -1,5 +1,5 @@
 Name:            pandoc
-Version:         1.12.2
+Version:         1.12.2.1
 Cabal-Version:   >= 1.10
 Build-Type:      Custom
 License:         GPL
diff --git a/src/Text/Pandoc/Readers/Markdown.hs b/src/Text/Pandoc/Readers/Markdown.hs
--- a/src/Text/Pandoc/Readers/Markdown.hs
+++ b/src/Text/Pandoc/Readers/Markdown.hs
@@ -732,8 +732,12 @@
   notFollowedBy' (do indentSpaces
                      many (spaceChar)
                      listStart)
-  chunks <- manyTill (liftM snd (htmlTag isCommentTag) <|> count 1 (satisfy (/='<'))
-                    <|> (notFollowedBy' (htmlTag isBlockTag) >> count 1 anyChar)) newline
+  notFollowedBy' $ htmlTag (~== TagClose "div")
+  chunks <- manyTill
+              (  many1 (satisfy $ \c -> c /= '\n' && c /= '<')
+             <|> liftM snd (htmlTag isCommentTag)
+             <|> count 1 anyChar
+              ) newline
   return $ concat chunks
 
 -- parse raw text for one list item, excluding start marker and continuations
@@ -760,7 +764,7 @@
 listContinuationLine = try $ do
   notFollowedBy blankline
   notFollowedBy' listStart
-  notFollowedBy' $ try $ skipMany spaceChar >> htmlTag (~== TagClose "div")
+  notFollowedBy' $ htmlTag (~== TagClose "div")
   optional indentSpaces
   result <- anyLine
   return $ result ++ "\n"