Radius does not work properly

The radius selector or [r=X] does not work properly in Pre-Release 2 of Minecraft 1.12.
If you throw an item on the ground, using this command:
/execute @e[type=Item] ~0 ~0 ~0 /execute @a[r=2] ~0 ~0 ~0 /say Hi
will activate it no matter your distance to the actual item.