使用完整URI反向代理php-fpm

I'm trying to setup reverse proxy for my php-fpm. My current configuration almost works, however if there is space in URI, ie /example/api/search/some%20phrase it doesn't work.

This configuration is worked when I was just simply 'redirecting' to php-fpm. Now I need to strip first part of my URI /example/api to just /api and it's broken.

Here is part of my Nginx config:

location ^~ /example/api {
    root /app/public;

    rewrite ^/example(.*)$ $1 break;

    try_files $uri /index.php?$args;
}

location ~ \.php$ {
    set $newurl $request_uri;
    if ($newurl ~ ^/example(.*)$) {
        set $newurl $1;
        root /app/public;
    }

    fastcgi_split_path_info ^(.+\.php)(/.+)$;
    fastcgi_pass 10.171.226.48:9000;
    fastcgi_index index.php;
    include fastcgi_params;
    fastcgi_param REQUEST_URI $newurl;
    fastcgi_param SCRIPT_FILENAME $document_root$fastcgi_script_name;
    fastcgi_param PATH_INFO $fastcgi_path_info;
}