@Wiz
In theme model, try to change (3 times, for cities it starts with c.s_name...):
$this->dao->where('s_name like "%' . osc_esc_html($pattern) . '%"');
into:
if(osc_get_current_user_locations_native() == 1) {
$this->dao->where(sprintf('(s_name like "%%%s%%" OR s_name_native like "%%%s%%")', osc_esc_html($pattern), osc_esc_html($pattern)));
} else {
$this->dao->where(sprintf('s_name like "%%%s%%"', osc_esc_html($pattern)));
}