lsd should display correctly Icon\r file along with other files in the same folder.
When using a custom folder icon (presence of Icon\r in the directory), any folder which name is sorted alphabetically _AFTER_ Icon\r will mess up the output of lsd command (lsd -la still works correctly though).

Icon\r contains a CR character r which make it displays improperly.
I'm not sure about the correct behavior but ls is displaying something like this Icon\n -> Icon??
Good old ls displays Icon?

looks like it's fixed in 0.16.0, I don't get this issue anymore, thanks!