Testing the same scenario with this online demo—http://demos.telerik.com/aspnet-ajax/editor/examples/overview/defaultcs.aspx
—I am unable to reproduce the same problem.
What is the version of the UI for ASP.NET AJAX suite used? Can you try if upgrading resolves the issue.
Also, by design, RadEditor would add only the domain with the path to the file. But in the screencast I see URL to an aspx page with the entire query string at the end, which is not a behavior implemented in RadEditor.
Verify if there are any customizations regarding the RadEditor commands that may lead to the shown result.
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