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In this video, Ryan demonstrates how to make text behave in Photoshop by properly wrapping text and adjusting the wrapping rather than the size as the text box is resized. He also explains how to ensure that different paragraph options affect the text properly. Ryan encountered issues with text not behaving as expected when creating a card, but shows viewers how to resolve these problems. When pasting text in Photoshop, it is important to understand that it will be in point format, where dragging will change the text size. Ryan provides guidance on how to address these issues and make text behave as desired.