[BUG] Pressing ctrl-r to see the output of the last command causes convulsive flickering in iTerm2

Environment

• Claude CLI version: 0.2.69
• Operating System: macOS 15.3.1
• Terminal: iTerm2

Bug Description

Pressing ctrl-R to view the output of the last command breaks the display, causing rapid flickering and apparent fighting over whether ctrl-r means searching backwards through inputs or something else. It's hard to say what's going on exactly, but the feature is unusable and I often have to kill Claude Code to get it back.

Steps to Reproduce

1. Get Claude to use the bash tool to run a command that produces lots of output (hundreds of lines)
2. Press ctrl-r to see it

Expected Behavior

I see the output.

Actual Behavior

Madness. Absolutel psychedelic madness.

Additional Context

There seem to be a lot of terminal related issues. The output is very pretty but a GUI might be more consistent.