Parser breaks on more than 2 pipes in a loop

[Chiller Dragon]

Code editor

neovim

Platform

Unix

Version

5.1.2

What steps will reproduce the bug?

#!/bin/bash

urlencodepipe() {
    LANG=C;
    while IFS= read -r c;
    do
        case $c in [a-zA-Z0-9.~_-]) printf "%s" "$c"; continue ;; esac
        printf "%s" "$c" | od -An -tx1 | tr ' ' % | tr -d '\n'
    done <<EOF
$(fold -w1)
EOF
    echo
}

urlencode() {
	printf '%s\n' "$*" | urlencodepipe
}

urlencode foo bar

$ cat test.sh 
#!/bin/sh

urlencodepipe() {
    LANG=C;
    while IFS= read -r c;
    do
        case $c in [a-zA-Z0-9.~_-]) printf "%s" "$c"; continue ;; esac
        printf "%s" "$c" | od -An -tx1 | tr ' ' % | tr -d '\n'
    done <<EOF
$(fold -w1)
EOF
    echo
}

urlencode() {
        printf '%s\n' "$*" | urlencodepipe
}

urlencode foo bar

$ shellcheck test.sh 
$ sh test.sh 
foo%20bar

How often does it reproduce? Is there a required condition?

Every time with this exact code.

What is the expected behavior?

Be robust and do not break the entire file if one syntax is parsed wrong.
Don't fail to parse valid bash scripts.

What do you see instead?

Starting in line 10 it just breaks down. The syntax highlighter for the rest of the file is useless. The documentation comments are gone. It just seems to fully die.

Additional information

I had a bit of a hard time producing a minimal example. This is one with a bit less code that still breaks

Interestingly removing one of the pipes fixes it

So the simplest one I could come up with is this one

#!/bin/bash

hell() {
    while read -r word
    do
        printf "%s" "$word" | cat | cat | cat
    done <<EOF
    hello world
EOF
}

hell