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This version of nano has some problems: The -r option to wrap long lines at a fixed width does not work. Confirmed version 2.2.4+ works as expected. Additionally, there may be other problems with using nano 2.0.9 over ssh connections from Macs: https://discussions.apple.com/thread/3252834?start=0&tstart=0
The line wrapping is disabled by default (as requested in bug 528359). You need to override the system default to enable line wrapping: echo unset nowrap > ~/.nanorc