iTerm2 output broken since upgrade to El Capitan
I found the setting that was causing the problem. I don't know why but its the "Treat ambiguous width-characters as double-width". See screenshot:  Disabling the setting makes the terminal work normal.

I'm using DejaVu Monospace for Powerline which might contain those ambiguous width character and I guess that the output of doge also contains those chars. So anyone using those should disable the setting.