Large chunks of pasted text end up as one block and does not respect formatting

[auryn-macmillan]

Describe the bug
Pasting a large chunk of formatted text strips the formatting and results in one large paragraph block.

To Reproduce
Steps to reproduce the behavior:

1. start drafting a new post
2. put a large chunk of a formatted text onto your clipboard
3. past it into your draft
4. your formatting is gone and the text is one large paragraph block

Expected behavior

1. Pasted text should preserve any existing formatting.
2. Pasted text should result in multiple blocks. Ideally it should distinguish between hard and soft line breaks, the former resulting in a new block, the latter resulting in a new line in the same block.