PHPlist using phpmailer, by default sets to send email with Content-Transfer-Encoding set to 8-bit. However, mail transport standards forbid lines longer than 998 characters and has to handle such non-compliant lines by breaking/folding them, or the next hop MTA (Mail Transfer Agent) might reject the message or truncate the lines.
The fix for the problem is to use "base64" or "quoted-printable" encoding, which will fold the lines in a way that can be undone by the recipient MUA (Mail User Agent).
If using phplist with phpmailer, the file to edit would be "admin/phpmailer/class.phpmailer.php", as below:
var $Encoding = "base64";