Markup produced by Cite extension contains a lot of extra <p> tags

[joelittlejohn]

With Markdown rendering active I get this:

instead of this:

The markup in the first example (Markdown active) looks like this:

<p>The Sun is pretty big.</p><p><sup id="cite_ref-1" class="reference"><a href="#cite_note-1">&#91;1&#93;</a></sup></p><p> The Moon, however, is not so big.</p><p><sup id="cite_ref-2" class="reference"><a href="#cite_note-2">&#91;2&#93;</a></sup></p><p class="mw-empty-elt"></p>

but the markup should look like this:

The Sun is pretty big.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2">&#91;1&#93;</a></sup> The Moon, however, is not so big.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3">&#91;2&#93;</a></sup>