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Currently it does an exact match on what you type, including spaces.
Ah ok, thanks — i was using space-separated filter terms.
EDIT: Is it strange that the filter box uses a single string like this? It doesn't let you include multiple terms to filter by, so you really only get one filter.
For example: If I search for Armor, I can't filter "Steel" and "+10" unless "Steel +10" exists somewhere on the sheet.