Oh dang, you used my R2 contest level to showcase the bug
I guess I'm flattered
Yes, it looks perfectly fine in the editor, since I obviously made the level, but had no idea that it was showing up weird in high res. Thanks for bringing this to my attention. In the meantime, you can play in low-res and it won't have this problem
edit: You have the old version of my R2 btw
Even then, the problem with terrain not showing up in high-res should be present as well