Mecrurial pull failed... is PyCharm ignoring hgignore?

When pulling from mercurial I am getting:

abort: /home/xxxxx/templatetags/__init__.pyc looks like a binary file.

Yet .hgignore shows:

# See
syntax: glob
*.pyc            # Python files as compiled
*.orig            # Mercurial merge files

Why is it complaining about the compiled python file?
1 comment
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Bryce, please file a bug report in the issue tracker for Mercurial plug-in for IntelliJ.

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