Tab completion shifts characters, makes command unreadable

[markogresak]

A gif explaining what my problem is (sorry that it's a bit laggy, this happened after conversion from video):

As you can see I have set the correct font (Meslo LG M DZ Regular for Powerline), I also had set the LANG and LANG_ALL values to en_US.UTF-8.

Here is my .zshrc, the theme config part is at the top, the code at bottom are mostly functions/aliases.

I'm using:

• OS X Yosemite 10.10.4 (freshly installed today, as is the rest)
• iTerm2 Build 2.9.20150720-nightly -- also happening in Terminal.app
• zsh 5.0.8 (x86_64-apple-darwin14.3.0)
• this theme, configured with mentioned font and material design colors theme

I have been using this theme (same config) for almost a year before I decided to reinstall the OS and now I can't figure out what am I missing.