I have this problem as well, RanAS that solution doesn't seem to help anything. The only temporary solution I have found is 'enter' keying down the final set of div tags way way down until the gap is closed. Which makes no sense.
You can get rid of those extra 'enter' keys there, and configure the value of min-height from .ly-13579_bg instead. I think min-height:340px; could work for now, but you can change it to be more or less.