I have this problem a lot:

Paragraphs need to be broken down into indentation. At the proper location in any given paragraph, I hit ENTER. Everything falls below into a new separate paragraph. So far, so good. Then I indent with the paragraph indentation tool like you see above the message field where you're typing.

Then I notice that I shouldn't have indented all that's there. So, I hit ENTER again and divide the words that don't belong into another new paragraph. But now, it's indented and I want to UN indent it. I hit the proper tool and it throws the selected paragraph ABOVE the last indented paragraph. Above!!!

THAT's surely a bug.

The work around is to select by highlighting the misplaced paragraph and then drag it to the next paragraph below the indented paragraph and start over with it there.

What a pain in the neck.