struct diff_words_buffer {
        mmfile_t text;
        long alloc;
-       long current; /* output pointer */
-       int suppressed_newline;
+       struct diff_words_orig {
+               const char *begin, *end;
+       } *orig;
+       int orig_nr, orig_alloc;
 };
 
 static void diff_words_append(char *line, unsigned long len,
 
 struct diff_words_data {
        struct diff_words_buffer minus, plus;
+       const char *current_plus;
        FILE *file;
 };
 
-static void print_word(FILE *file, struct diff_words_buffer *buffer, int len, int color,
-               int suppress_newline)
+static void fn_out_diff_words_aux(void *priv, char *line, unsigned long len)
 {
-       const char *ptr;
-       int eol = 0;
+       struct diff_words_data *diff_words = priv;
+       int minus_first, minus_len, plus_first, plus_len;
+       const char *minus_begin, *minus_end, *plus_begin, *plus_end;
 
-       if (len == 0)
+       if (line[0] != '@' || parse_hunk_header(line, len,
+                       &minus_first, &minus_len, &plus_first, &plus_len))
                return;
 
-       ptr  = buffer->text.ptr + buffer->current;
-       buffer->current += len;
+       /* POSIX requires that first be decremented by one if len == 0... */
+       if (minus_len) {
+               minus_begin = diff_words->minus.orig[minus_first].begin;
+               minus_end =
+                       diff_words->minus.orig[minus_first + minus_len - 1].end;
+       } else
+               minus_begin = minus_end =
+                       diff_words->minus.orig[minus_first].end;
 
-       if (ptr[len - 1] == '\n') {
-               eol = 1;
-               len--;
-       }
+       if (plus_len) {
+               plus_begin = diff_words->plus.orig[plus_first].begin;
+               plus_end = diff_words->plus.orig[plus_first + plus_len - 1].end;
+       } else
+               plus_begin = plus_end = diff_words->plus.orig[plus_first].end;
 
-       fputs(diff_get_color(1, color), file);
-       fwrite(ptr, len, 1, file);
-       fputs(diff_get_color(1, DIFF_RESET), file);
+       if (diff_words->current_plus != plus_begin)
+               fwrite(diff_words->current_plus,
+                               plus_begin - diff_words->current_plus, 1,
+                               diff_words->file);
+       if (minus_begin != minus_end)
+               color_fwrite_lines(diff_words->file,
+                               diff_get_color(1, DIFF_FILE_OLD),
+                               minus_end - minus_begin, minus_begin);
+       if (plus_begin != plus_end)
+               color_fwrite_lines(diff_words->file,
+                               diff_get_color(1, DIFF_FILE_NEW),
+                               plus_end - plus_begin, plus_begin);
 
-       if (eol) {
-               if (suppress_newline)
-                       buffer->suppressed_newline = 1;
-               else
-                       putc('\n', file);
-       }
-}
-
-static void fn_out_diff_words_aux(void *priv, char *line, unsigned long len)
-{
-       struct diff_words_data *diff_words = priv;
-
-       if (diff_words->minus.suppressed_newline) {
-               if (line[0] != '+')
-                       putc('\n', diff_words->file);
-               diff_words->minus.suppressed_newline = 0;
-       }
-
-       len--;
-       switch (line[0]) {
-               case '-':
-                       print_word(diff_words->file,
-                                  &diff_words->minus, len, DIFF_FILE_OLD, 1);
-                       break;
-               case '+':
-                       print_word(diff_words->file,
-                                  &diff_words->plus, len, DIFF_FILE_NEW, 0);
-                       break;
-               case ' ':
-                       print_word(diff_words->file,
-                                  &diff_words->plus, len, DIFF_PLAIN, 0);
-                       diff_words->minus.current += len;
-                       break;
-       }
+       diff_words->current_plus = plus_end;
 }
 
 /*
- * This function splits the words in buffer->text, and stores the list with
- * newline separator into out.
+ * This function splits the words in buffer->text, stores the list with
+ * newline separator into out, and saves the offsets of the original words
+ * in buffer->orig.
  */
 static void diff_words_fill(struct diff_words_buffer *buffer, mmfile_t *out)
 {
-       int i;
-       out->size = buffer->text.size;
-       out->ptr = xmalloc(out->size);
-       memcpy(out->ptr, buffer->text.ptr, out->size);
-       for (i = 0; i < out->size; i++)
-               if (isspace(out->ptr[i]))
-                       out->ptr[i] = '\n';
-       buffer->current = 0;
+       int i, j;
+
+       out->size = 0;
+       out->ptr = xmalloc(buffer->text.size);
+
+       /* fake an empty "0th" word */
+       ALLOC_GROW(buffer->orig, 1, buffer->orig_alloc);
+       buffer->orig[0].begin = buffer->orig[0].end = buffer->text.ptr;
+       buffer->orig_nr = 1;
+
+       for (i = 0; i < buffer->text.size; i++) {
+               if (isspace(buffer->text.ptr[i]))
+                       continue;
+               for (j = i + 1; j < buffer->text.size &&
+                               !isspace(buffer->text.ptr[j]); j++)
+                       ; /* find the end of the word */
+
+               /* store original boundaries */
+               ALLOC_GROW(buffer->orig, buffer->orig_nr + 1,
+                               buffer->orig_alloc);
+               buffer->orig[buffer->orig_nr].begin = buffer->text.ptr + i;
+               buffer->orig[buffer->orig_nr].end = buffer->text.ptr + j;
+               buffer->orig_nr++;
+
+               /* store one word */
+               memcpy(out->ptr + out->size, buffer->text.ptr + i, j - i);
+               out->ptr[out->size + j - i] = '\n';
+               out->size += j - i + 1;
+
+               i = j - 1;
+       }
 }
 
 /* this executes the word diff on the accumulated buffers */
        xdemitcb_t ecb;
        mmfile_t minus, plus;
 
+       /* special case: only removal */
+       if (!diff_words->plus.text.size) {
+               color_fwrite_lines(diff_words->file,
+                       diff_get_color(1, DIFF_FILE_OLD),
+                       diff_words->minus.text.size, diff_words->minus.text.ptr);
+               diff_words->minus.text.size = 0;
+               return;
+       }
+
+       diff_words->current_plus = diff_words->plus.text.ptr;
+
        memset(&xpp, 0, sizeof(xpp));
        memset(&xecfg, 0, sizeof(xecfg));
        diff_words_fill(&diff_words->minus, &minus);
        diff_words_fill(&diff_words->plus, &plus);
        xpp.flags = XDF_NEED_MINIMAL;
-       xecfg.ctxlen = diff_words->minus.alloc + diff_words->plus.alloc;
+       xecfg.ctxlen = 0;
        xdi_diff_outf(&minus, &plus, fn_out_diff_words_aux, diff_words,
                      &xpp, &xecfg, &ecb);
        free(minus.ptr);
        free(plus.ptr);
+       if (diff_words->current_plus != diff_words->plus.text.ptr +
+                       diff_words->plus.text.size)
+               fwrite(diff_words->current_plus,
+                       diff_words->plus.text.ptr + diff_words->plus.text.size
+                       - diff_words->current_plus, 1,
+                       diff_words->file);
        diff_words->minus.text.size = diff_words->plus.text.size = 0;
-
-       if (diff_words->minus.suppressed_newline) {
-               putc('\n', diff_words->file);
-               diff_words->minus.suppressed_newline = 0;
-       }
 }
 
 typedef unsigned long (*sane_truncate_fn)(char *line, unsigned long len);
                        diff_words_show(ecbdata->diff_words);
 
                free (ecbdata->diff_words->minus.text.ptr);
+               free (ecbdata->diff_words->minus.orig);
                free (ecbdata->diff_words->plus.text.ptr);
+               free (ecbdata->diff_words->plus.orig);
                free(ecbdata->diff_words);
                ecbdata->diff_words = NULL;
        }