Posts on Main Page Lack Structure

When the theme is set to display the posts on the main page, it seems to be ignoring the general wordpress setting to display the full posts (rather than a summary) and strips out the structure so all the paragraphs become one big paragraph, which makes it unreadable.

The problem is definitely specific to the theme since it goes away when I active a different theme.

Is there a setting somewhere within the theme to get rid of this behavior?

The page I need help with: [log in to see the link]