DEMO: Associated Merchant returns weird results

see attached files:

in the Associated Merchant field, enter "new" hoping to see "new merchant" on the list (since i see it two inches on the left in the Orders List Merchant column. Instead, it returns No Merchant Found

so i back space the text "new" (field is now blank) and now the UI is returning two (random?) merchants - AC Repair of Arizona and Tony's Demo Pizza.