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How does it handle merge conflicts?

Seems like an interesting idea, my concern would be that the abstraction of a filesystem on top of git would break down really quickly once multiples users started editing things.

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Merging is pluggable and the currently implemented strategy is to merge always accepting the local changes. Actually we are currently using it in an environment in which multiple edits on the same file can be made and as in the case of "regular" filesystem the last one closing the file wins. The advantage is that you will have all the revisions.

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