Terminal prompt 'saving' certain commands on up-arrow
You're not escaping the non-printing characters in your prompt. See this article, and use "\[" and "\]" around the colors, something like this (untested) for example...

PS1="\n\e[0:\[${color}\]m[\W]\n\e[0:\[${color}\]m[\u]-&gt; $reset"


You may need to tweek that. Like I said, this is untested so I may have inserted a "\]" in the middle of a colour code. For my prompt I do the escaping when I initialise the colour variables:

PS1_FG="\[$(tput setaf 223)\]"  # Prompt foreground colour (223 = pale orange/brown)


For what it's worth, I can highly recommend using tput when you're dealing with control codes. It makes your scripts more portable, and (IMHO) is easier to read.