Nested @extends possible regression

[LaurentGoderre]

This might be related to #592, the following code is compiling fine in libsass 2.1-beta but no in 3.x

%test {
    > {
        .red {
            color: #F00;
        }
    }
}

p {
    @extend %test;

    > {
        a {
            @extend %test;
        }
    }
}

In 2.1-beta I get

p > .red, p > a > .red {
  color: #F00; 
}

and in 3.x I get

p > .red {
  color: #F00; 
}

[torkiljohnsen]

I am experiencing something similar. I set up a CodePen snippet where you can compare how CodePen compiles and how LibSASS compiles (added the LibSASS compiled source in a comment). Click the eye icon to toggle compiled CSS view:

http://codepen.io/torkil/pen/BydJQr?editors=110

[xzyfer]

I've confirmed this issue is present on master.

Spec added sass/sass-spec#260.