Replacing watched words with markdown doesn't render the markdown

Scenario:
I want to have a watched word, say GET (no quotes) and I want to replace it with ## GET to make it an H2 header. I create that watched word and its replacement, but when I compose a message with GET, and hit save, my post returns this:

It seems that it should be rendering this as markdown.

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I can repro. Markdown and HTML as well aren’t parsed in replacement strings.

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