HyperSQL Database Engine (HSQLDB)

Given a simple table like this:
CREATE TABLE q (id INT PRIMARY KEY)

And trying to run this MERGE statement:
MERGE INTO q USING (VALUES(1)) ON id = 1 WHEN MATCHED THEN UPDATE SET id = 1 WHEN NOT MATCHED THEN INSERT VALUES (1)

I receive this error: "user lacks privilege or object not found: SYSTEM_SUBQUERY".
Exactly same query used to work with HSQLDB 2.2.8 and before, but is not working both on 2.2.9 and latest 2.3.0 snapshot.

This type of queries is used by Liquibase <loadUpdateData> tag on HSQLDB (see this pull request - https://github.com/liquibase/liquibase/pull/22).