Hello, The behaviour you describe is a known limitation and is probably a duplicate of bug 686772. As the man page notes:
If you have wdiff installed, colordiff will correctly colourise the
added and removed text, provided that the '-n' option is given to
wdiff:
$ wdiff -n file1 file2 | colordiff
That is considered the appropriate workaround for this situation.
Dave.
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