Running CLI editors does not work when piped to rainbow, unlike when piped to the Ruby lolcat

[quackduck]

An asciinema showing this here.

With the Ruby lolcat (original):

With rainbow:

This is with just Nano but Vim behaves like this too.

What causes this and what could be done to fix this?

[arsham]

I'm not sure where to begin with honestly. I'm assuming it has to be with how we are handling the pipes.

[quackduck]

Or perhaps how escape codes already present in the text are handled.