Hi Aren, thanks for the response! Soft-wrapped text should discard spaces at the new line, and this works properly in other cases in NGUI. The bug here is if the closing [/i] is where it decides to insert the new line character. My text does not have a hard new line character; if it did, I would agree it should render the space, but it does not.
Here is another screenshot showing NGUI doing the right thing in other cases, but the wrong thing in this case. Making the space italicized is perhaps a workaround, but you can't always control what text your label is showing. This was working correctly before and is a new bug.