When coding a mud you need to handle the backspace character to delete previous input characters yourself, as if the telnet client which connects is in character mode rather then line mode, it is the servers responsibility to handle this correctly.
However, the situation you have sounds almost like you are using a client which is in line mode, but is automatically typing ctrl-R for you each time you press delete. In a unix-like console running in line mode ctrl-R refreshes the current line to the screen incase you have become confused because of other text received while you were typing. It can be paticually confusing while backspacing, so a console may 'help you out' by typing Ctrl-R each time you press delete.
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