There is an open bug regarding this issue in the karaf JIRA:https://issues.apache.org/jira/browse/KARAF-1278
There are alternate shortcuts for History and Line editing available here: http://cnswww.cns.cwru.edu/php/chet/readline/readline.html#SEC15It's a possible workaround, just not a convenient one.
Losing history is a deal breaker. Using another shortcut is also not very convenient. Can we move back to old version of karaf?