There's a reason most escaping functions are usually in system libraries in most programming languages and a bootstrap compiler shouldn't handle escapes directly itself, I was aware of that. So, old lessons still hold, it's just not worth to debug this. Removing escaped characters out of the compiler.
Rewrote some of the code, the sources of stage two are 'escape-free' now except for some printing commands. So, whatever escape bug I am gonna have is going to be a logical error.
[ It turned out typing was turned of in the makefile, turned it back on, it caught a number of minor mistakes at the expense of really long compile times. ]