Problem merging changes to file that was renamed

gistfile1.sh

#!/bin/sh

# Create empty repository for testing
mkdir cherrypick
cd cherrypick
git init

# Simulate some initial work
echo bob > a.txt
git add a.txt
git commit -m "bob"

# Simulate performing a spike to test something out
git checkout -b other
mkdir foo
mv a.txt foo/
echo jim > foo/a.txt
git add -A
git commit -m "jim"

# Simulate doing some other work on the master
# This work includes part of the change made by the spike
# Including the rename of a.txt => foo/a.txt
git checkout master
mkdir foo
mv a.txt foo/
git add -A
git commit -m "move a.txt"

# Try to merge the spike in to incorporate the changes to foo/a.txt
git merge --no-commit --squash other