This happens at http://uat01.openmrs.org:8080/openmrs/findPatient.htm running Version: 1.11.0 SNAPSHOT Build 4c66ba.
There is a patient named "James Arbaugh". To reproduce...
1.) Search for a patient James --> Notice James Arbaugh is in the list
2.) Search for patient "James Ar" --> Notice it yields "No matching records found"
The previous list results should still be displayed if firing a new search with the additional name (of 2 characters or less), the same as a space after a single name still shows the search results. Better yet, consider running the search again with just the 1 or 2 characters that are typed.