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In Smarty-like templates using numerical versions of "{}" is sometimes needed for adding JavaScript in templates code. Example: <input type="button" onclick="showHide({element:this, default:'show'})"> So in HTML files "{" should be treated as "{" and } as "}".
Not a bug, more like enhancement if any. I think you can (with Smarty 3) use following just fine <input type="button" onclick="showHide({ element:this, default:'show' })"> adding whitespace before/after (I'm not sure if both or just after { and before } ) should prevent Smarty from interpreting it as a Smarty code