Currently, the diff algorithm considers moved blocks of text as the removal and the addition of a block of text.
Ideally, users should see that a block of text just changed position. Even more ideally, they should also see the changes that happened within the block of text.
Design a mockup to show the ideal situation. The "ideal version" has multiple real-life challenges, and design is one of them. Nevertheless it would be great to have a vision, where this could lead to and to have a design towards which to work.
- design one version for a text, where exactly one text block was moved
- design one version for a text, where multiple (e.g. 5) blocks of text were moved, crossing each other's moving paths