--- a/src/org/tmatesoft/hg/repo/HgWorkingCopyStatusCollector.java	Fri Oct 19 16:03:21 2012 +0200
+++ b/src/org/tmatesoft/hg/repo/HgWorkingCopyStatusCollector.java	Mon Oct 22 20:33:20 2012 +0200
@@ -340,6 +340,10 @@
 				}
 			} else if (!sizeEqual && r.size() >= 0) {
 				inspector.modified(fname);
+			} else if (r.size() == -2) {
+				// DirState wiki calls this np2 metastate: 
+				// 'np2': merged from other parent (status == 'n', size == -2) 
+				inspector.modified(fname);
 			} else {
 				// size is the same or unknown, and, perhaps, different timestamp
 				// check actual content to avoid false modified files