#!/bin/bash
s='first line
second line DELETE ME
- third line
- fourth line
fifth line
sixth line DELETE ME
seventh line
- eighth line'
sed '/DELETE ME/{:a;N;s/\n[[:blank:]]*-.*//;ta;!P;D}' <<< "$s"
IyEvYmluL2Jhc2gKcz0nZmlyc3QgbGluZQpzZWNvbmQgbGluZSBERUxFVEUgTUUKICAtIHRoaXJkIGxpbmUKICAtIGZvdXJ0aCBsaW5lCmZpZnRoIGxpbmUKc2l4dGggbGluZSBERUxFVEUgTUUKc2V2ZW50aCBsaW5lCiAgLSBlaWdodGggbGluZScKc2VkICcvREVMRVRFIE1FL3s6YTtOO3MvXG5bWzpibGFuazpdXSotLiovLzt0YTshUDtEfScgPDw8ICIkcyI=