I have recently reinstalled ruby 2.1.2 like so since I wanted to install a gem (ruby-debug-ide)
ruby-debug-ide
sudo rvm reinstall 2.1.2 --disable-binary --with
Adding gem 'rb-readline' to my Gemfile fixed this problem for me. See https://github.com/ConnorAtherton/rb-readline.
gem 'rb-readline'
Gemfile