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Description of problem:
[root@rhel-7-server ~]# useradd -m -s /bin/zsh testuser
[root@rhel-7-server ~]# echo setopt HIST_REDUCE_BLANKS >> /home/testuser/.zshrc
[root@rhel-7-server ~]# su - testuser
[testuser@rhel-7-server]~% for i in $(seq 1 2) ; do echo $i ; done
1
2
[testuser@rhel-7-server]~% for i in seq 1 2) ; do echo $i ; done 

When HIST_REDUCE_BLANKS is in effect, pressing arrow-up after a command which includes $() shows the previous command broken, $( has gone missing.

Version-Release number of selected component (if applicable):
zsh-5.0.2-14.el7.x86_64 (RHEL 6 / Fedora are ok)

Thank you for reporting the bug!

It seems to be caused by the fix for bug #1241023.

The following upstream commit fixes it:

https://sourceforge.net/p/zsh/code/ci/f2a2f28f

> Fixed In Version: zsh-5.0.2-20.el7

Thanks, I'm happy to confirm the issue is fixed with this version!

I'm afraid I found a case where this is still problematic:

# useradd -m -s /bin/zsh testuser
# echo setopt HIST_REDUCE_BLANKS >> /home/testuser/.zshrc
# echo "alias grep='grep --color=tty'" >> /home/testuser/.zshrc
# su - testuser
[testuser@mars]~% for metric in $(pminfo proc | grep cmd); do echo $metric ; done
proc.psinfo.cmd
[testuser@mars]~% for metric in $(pminfo proc | grepgrep --color=tty cmd); do echo $metric ; done
[testuser@mars]~% rpm -q zsh
zsh-5.0.2-20.el7.x86_64
[testuser@mars]~% 

Thanks.

Indeed.  I will backport the following upstream commit to fix it:

https://sourceforge.net/p/zsh/code/ci/e34ce851

> Fixed In Version: zsh-5.0.2-22.el7

Thanks, I'm happy to confirm the issue is fixed with this version!

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://rhn.redhat.com/errata/RHBA-2016-2152.html