zsh and unicorn or thin, enter becomes ^M and no newline

I have switched my os x shell to `zsh` and all looks nice and clean. Though I'm having only one problem with unicorn. Basically what happens is that when I start unicorn with: ``` % unicorn -c config/unicorn.rb ``` I see the logs of unicorn, but if I press `enter`, to make some space and separate logs between calls every `enter` prints a `^M` and makes no new lines. If then I use `binding.pry` to pause the execution I see all the enter buttons being interpreted and I see several empty lines (just the prompt string). With Thin is the same thing. this didn't happen with bash, I'm not sure what caused it, but it's mildly annoying. Do you know how to fix this? thanks.