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The split view mode always paints the whole line for both the new and the old version in a single color. This is especially irritating when a line was changed, because then it is completely red which makes it look like that line was removed.
IMHO the view should:
Display lines that were added white on the left side and green on the right side
Display lines that were modified red on the left and green on the right side
Display lines that were removed red on the left and white on the right side