I've been using Cyberduck for months to remotely edit files with Sublime Text, with no issues. However, today I noticed that when I edited a text file inside a folder containing "é" in its name, the file opened normally in Sublime Text, but saved changes did not get sent to the remote server. As far as I can tell, the only variable causing this to fail is the "é" in the path. I tried creating a folder with "…" (the ellipsis character, not three periods) and it worked fine. So perhaps the issue only arises with characters that exist in Latin-1? I'm not sure. Anyway, it would be great if this could be fixed! I've marked this core because I have no reason to believe it's restricted to SFTP, but that is the protocol I'm using to connect to the remote server.
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I have now reproduced this issue with the "î" character, so I know it isn't restricted to "é". I do not know the full range of affected characters, but presumably the fix, when identified, will resolve them all at once.