Shortcut: Ctrl+T
Use this command to format the current paragraph (current caret location in the file) or selected text to a specific column number boundary. All hard returns are removed for the paragraph, and new hard returns are automatically inserted at the appropriate position based upon the settings in Reformat paragraph setup.
A "paragraph" of text is determined as being delimited by two hard returns in succession (i.e. a blank line).
To reformat the entire file, press Ctrl + A to first select the complete file, then reformat it.
If "Auto indent new lines" is enabled in Settings » Editor display » Formatting, the paragraphs will be automatically indented based on the first line of the paragraph.