bzr crashed with ValueError in extract(): Unknown content control code: 0

I was developing a lp branch, made some changes, did a bzr status and it listed the changed files. Then I did a bzr diff and the crash occurred. The only reproducible change I made was to strip trailing whitespace from my files using this command:

find . -type f -exec sed -i 's/ *$//' '{}' ';'

ProblemType: Crash
DistroRelease: Ubuntu 12.04
Package: bzr 2.5.0-1ubuntu1
ProcVersionSignature: Ubuntu 3.2.0-17.27-generic 3.2.6
Uname: Linux 3.2.0-17-generic x86_64
NonfreeKernelModules: nvidia
ApportVersion: 1.93-0ubuntu2
Architecture: amd64
BzrDebugFlags: set()
BzrVersion: 2.5.0
CheckboxSubmission: 41733012f282e0b91a263998ebc59472
CheckboxSystem: 4ed15c40009aa6f7770f606350a390a2
CommandLine: ['/usr/bin/bzr', 'diff']
CrashDb: bzr
Date: Mon Feb 27 13:29:49 2012
ExecutablePath: /usr/bin/bzr
FileSystemEncoding: UTF-8
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release amd64 (20111012)
InterpreterPath: /usr/bin/python2.7
Locale: en_US.UTF-8
PackageArchitecture: all
Platform: Linux-3.2.0-17-generic-x86_64-with-Ubuntu-12.04-precise
ProcCmdline: /usr/bin/python /usr/bin/bzr diff
PythonVersion: 2.7.2
SourcePackage: bzr
Title: bzr crashed with ValueError in extract(): Unknown content control code: 0
UpgradeStatus: Upgraded to precise on 2012-01-16 (42 days ago)
UserEncoding: utf-8
UserGroups: adm admin cdrom dialout lpadmin plugdev sambashare