The smart quote feature in kramdown is certainly not complete and getting this right in general is a really hard problem. If I were to create kramdown now I would probably leave the smart quotes out completely.
However, I think that in this case it would a) be easy to add and b) pose no compatibility problems - I will have a look.
I have added some code to allow the requested behavior. However, I'm not entirely sure if the change has any side effects but I don't think so. The test suite still passes but that is not a 100% verification.
correctly puts opening and closing quotation marks:
Whereas having an ellipsis at the beginning of the quote
gives two closing quotation marks
Behavior is the same for HTML and LaTeX output. It's not a big issue, but having an ellipsis at the beginning of a quotation is quite common in typesetting.
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