[Plugin: WordPress SEO by Yoast] Category Title Inserts HTML markup

I love this plugin except I am having one major problem…
When I go to title templates and put in the %%category%% tag it shows html markup for category list
like this

<ul class=”post-categories”>

• Uncategorized

Softballs

here is live example
http://softballs.co/?p=1

I tested this with all other plugins turned off and clean database as well as with different themes.