[Orgmode] when do plain lists end?

[Ali Tofigh]

I'm having problems with plain lists. They don't seem to end. Ever.
I'm trying to use a blank line after my lists followed by a properly
indented paragraph, but org still thinks the paragraph is part of the
list:

---8<---
* heading
  - item 1
  - item 2

  paragraph bla bla

  - new list, item 1
--------

Now, if i move the cursor to item 2 and press TAB, everything up to
the new list is folded. But isn't org supposed to understand from the
indentation that the first list ends after item 2?

Cheers,
/Ali