Notice: since IDEA 2016.3.2 this breaks the terminal and is not required anymore. So just delete it when you update to a version it cannot create the Terminal.
For windows change the terminal shell path (File->Settings->Tools->Terminal) from cmd.exe to:
cmd.exe "/K mode con:cols=500 lines=9999&cmd.exe"
or if using the bash for windows subsystem:
cmd.exe "/K set LINES=9999&C:\windows\system32\bash.exe"
as described in the bug description (https://youtrack.jetbrains.com/issue/IDEA-117552)
Edit: wrap /K in quotes as well!