Yes, it needs to be encoded in some way. I just tried and here's the eaxct copy from my flat file:
<del>ASAsdsrfa eewr wer werwerw erwerwer werwe rwe rwe rwerwer werw erwer.
Wer wer ewrw erwerwe rwe rwer wer wer wer we rwe rwe.
Werwer werwerw erw er wer wer we rwerw e r we r we r werwerwer werwer werwerw erwerw erwer werw erwer.<del>
As you can see the parahraphs are intact... 🙁
Here's how I tried to input it:
$value3=htmlentities($_POST["value3"]);