diff --git a/doc/diffs.nvim.txt b/doc/diffs.nvim.txt
index f199d31..d1df476 100644
--- a/doc/diffs.nvim.txt
+++ b/doc/diffs.nvim.txt
@@ -75,6 +75,12 @@ Configuration is done via `vim.g.diffs`. Set this before the plugin loads:
           algorithm = 'default',
           max_lines = 500,
         },
+        priorities = {
+          clear = 198,
+          syntax = 199,
+          line_bg = 200,
+          char_bg = 201,
+        },
         overrides = {},
       },
       fugitive = {
@@ -161,6 +167,10 @@ Configuration is done via `vim.g.diffs`. Set this before the plugin loads:
                              Character-level (intra-line) diff highlighting.
                              See |diffs.IntraConfig| for fields.
 
+        {priorities}         (table, default: see below)
+                             Extmark priority values.
+                             See |diffs.PrioritiesConfig| for fields.
+
         {overrides}          (table, default: {})
                              Map of highlight group names to highlight
                              definitions (see |nvim_set_hl()|). Applied
@@ -182,6 +192,28 @@ Configuration is done via `vim.g.diffs`. Set this before the plugin loads:
                              direction. Lines are read with early exit —
                              cost scales with this value, not file size.
 
+                                                   *diffs.PrioritiesConfig*
+    Priorities config fields: ~
+        {clear}              (integer, default: 198)
+                             Priority for `DiffsClear` extmarks that reset
+                             underlying diff foreground colors. Must be
+                             below {syntax}.
+
+        {syntax}             (integer, default: 199)
+                             Priority for treesitter and vim syntax extmarks.
+                             Must be below {line_bg} so that colorscheme
+                             backgrounds on syntax groups do not obscure
+                             line-level diff backgrounds.
+
+        {line_bg}            (integer, default: 200)
+                             Priority for `DiffsAdd`/`DiffsDelete` line
+                             background extmarks. Must be below {char_bg}.
+
+        {char_bg}            (integer, default: 201)
+                             Priority for `DiffsAddText`/`DiffsDeleteText`
+                             character-level background extmarks. Highest
+                             priority so changed characters stand out.
+
                                                     *diffs.TreesitterConfig*
     Treesitter config fields: ~
         {enabled}            (boolean, default: true)
@@ -418,6 +450,7 @@ Configuration: ~
         disable_diagnostics = true,
         show_virtual_text = true,
         show_actions = false,
+        priority = 200,
         keymaps = {
           ours = 'doo',
           theirs = 'dot',
@@ -471,6 +504,11 @@ Configuration: ~
                              `DiffsConflictActions` highlight group.
                              Only keymaps that are not `false` appear.
 
+        {priority}           (integer, default: 200)
+                             Extmark priority for conflict region
+                             backgrounds and markers. Adjust if other
+                             plugins use the same priority range.
+
         {keymaps}            (table, default: see above)
                              Buffer-local keymaps for conflict resolution
                              and navigation. Each value accepts a string
@@ -566,12 +604,13 @@ Summary / commit detail views: ~
    - Code is parsed with |vim.treesitter.get_string_parser()|
    - If no treesitter parser and `vim.enabled`: vim syntax fallback via
      scratch buffer and |synID()|
-   - `Normal` extmarks at priority 198 clear underlying diff foreground
-   - Background extmarks (`DiffsAdd`/`DiffsDelete`) at priority 199
-   - Syntax highlights are applied as extmarks at priority 200
+   - `DiffsClear` extmarks at priority 198 clear underlying diff foreground
+   - Syntax highlights are applied as extmarks at priority 199
+   - Background extmarks (`DiffsAdd`/`DiffsDelete`) at priority 200
    - Character-level diff extmarks (`DiffsAddText`/`DiffsDeleteText`) at
      priority 201 overlay changed characters with an intense background
    - Conceal extmarks hide diff prefixes when `hide_prefix` is enabled
+   - All priorities are configurable via |diffs.PrioritiesConfig|
 4. Re-highlighting occurs on `TextChanged` (debounced) and `Syntax` events
 
 Diff mode views: ~
@@ -586,15 +625,10 @@ KNOWN LIMITATIONS                                       *diffs-limitations*
 
 Incomplete Syntax Context ~
                                                       *diffs-syntax-context*
-Treesitter parses each diff hunk in isolation. To provide surrounding code
-context, diffs.nvim reads lines from disk before and after each hunk
-(see |diffs.ContextConfig|, enabled by default). This resolves most boundary
-issues where incomplete constructs (e.g., a function definition at the edge
-of a hunk with no body) would confuse the parser.
-
-Set `highlights.context.enabled = false` to disable context padding. In rare
-cases, context padding may not help if the relevant surrounding code is very
-far from the hunk boundaries.
+Treesitter parses each diff hunk in isolation. Context lines within the hunk
+(lines with a ` ` prefix) provide syntactic context for the parser. In rare
+cases, hunks that start or end mid-expression may produce imperfect highlights
+due to treesitter error recovery.
 
 Syntax Highlighting Flash ~
                                                              *diffs-flash*
diff --git a/lua/diffs/conflict.lua b/lua/diffs/conflict.lua
index ce3618d..5ed8009 100644
--- a/lua/diffs/conflict.lua
+++ b/lua/diffs/conflict.lua
@@ -20,8 +20,6 @@ local attached_buffers = {}
 ---@type table<integer, boolean>
 local diagnostics_suppressed = {}
 
-local PRIORITY_LINE_BG = 200
-
 ---@param lines string[]
 ---@return diffs.ConflictRegion[]
 function M.parse(lines)
@@ -114,7 +112,7 @@ local function apply_highlights(bufnr, regions, config)
       end_row = region.marker_ours + 1,
       hl_group = 'DiffsConflictMarker',
       hl_eol = true,
-      priority = PRIORITY_LINE_BG,
+      priority = config.priority,
     })
 
     if config.show_virtual_text then
@@ -156,11 +154,11 @@ local function apply_highlights(bufnr, regions, config)
         end_row = line + 1,
         hl_group = 'DiffsConflictOurs',
         hl_eol = true,
-        priority = PRIORITY_LINE_BG,
+        priority = config.priority,
       })
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, line, 0, {
         number_hl_group = 'DiffsConflictOursNr',
-        priority = PRIORITY_LINE_BG,
+        priority = config.priority,
       })
     end
 
@@ -169,7 +167,7 @@ local function apply_highlights(bufnr, regions, config)
         end_row = region.marker_base + 1,
         hl_group = 'DiffsConflictMarker',
         hl_eol = true,
-        priority = PRIORITY_LINE_BG,
+        priority = config.priority,
       })
 
       for line = region.base_start, region.base_end - 1 do
@@ -177,11 +175,11 @@ local function apply_highlights(bufnr, regions, config)
           end_row = line + 1,
           hl_group = 'DiffsConflictBase',
           hl_eol = true,
-          priority = PRIORITY_LINE_BG,
+          priority = config.priority,
         })
         pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, line, 0, {
           number_hl_group = 'DiffsConflictBaseNr',
-          priority = PRIORITY_LINE_BG,
+          priority = config.priority,
         })
       end
     end
@@ -190,7 +188,7 @@ local function apply_highlights(bufnr, regions, config)
       end_row = region.marker_sep + 1,
       hl_group = 'DiffsConflictMarker',
       hl_eol = true,
-      priority = PRIORITY_LINE_BG,
+      priority = config.priority,
     })
 
     for line = region.theirs_start, region.theirs_end - 1 do
@@ -198,11 +196,11 @@ local function apply_highlights(bufnr, regions, config)
         end_row = line + 1,
         hl_group = 'DiffsConflictTheirs',
         hl_eol = true,
-        priority = PRIORITY_LINE_BG,
+        priority = config.priority,
       })
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, line, 0, {
         number_hl_group = 'DiffsConflictTheirsNr',
-        priority = PRIORITY_LINE_BG,
+        priority = config.priority,
       })
     end
 
@@ -210,7 +208,7 @@ local function apply_highlights(bufnr, regions, config)
       end_row = region.marker_theirs + 1,
       hl_group = 'DiffsConflictMarker',
       hl_eol = true,
-      priority = PRIORITY_LINE_BG,
+      priority = config.priority,
     })
 
     if config.show_virtual_text then
@@ -364,6 +362,7 @@ function M.goto_next(bufnr)
       return
     end
   end
+  vim.notify('[diffs.nvim]: wrapped to first conflict', vim.log.levels.INFO)
   vim.api.nvim_win_set_cursor(0, { regions[1].marker_ours + 1, 0 })
 end
 
@@ -381,6 +380,7 @@ function M.goto_prev(bufnr)
       return
     end
   end
+  vim.notify('[diffs.nvim]: wrapped to last conflict', vim.log.levels.INFO)
   vim.api.nvim_win_set_cursor(0, { regions[#regions].marker_ours + 1, 0 })
 end
 
diff --git a/lua/diffs/fugitive.lua b/lua/diffs/fugitive.lua
index b11985c..d4c3782 100644
--- a/lua/diffs/fugitive.lua
+++ b/lua/diffs/fugitive.lua
@@ -26,17 +26,62 @@ function M.get_section_at_line(bufnr, lnum)
   return nil
 end
 
+---@param s string
+---@return string
+local function unquote(s)
+  if s:sub(1, 1) ~= '"' then
+    return s
+  end
+  local inner = s:sub(2, -2)
+  local result = {}
+  local i = 1
+  while i <= #inner do
+    if inner:sub(i, i) == '\\' and i < #inner then
+      local next_char = inner:sub(i + 1, i + 1)
+      if next_char == 'n' then
+        table.insert(result, '\n')
+        i = i + 2
+      elseif next_char == 't' then
+        table.insert(result, '\t')
+        i = i + 2
+      elseif next_char == '"' then
+        table.insert(result, '"')
+        i = i + 2
+      elseif next_char == '\\' then
+        table.insert(result, '\\')
+        i = i + 2
+      elseif next_char:match('%d') then
+        local oct = inner:match('^(%d%d%d)', i + 1)
+        if oct then
+          table.insert(result, string.char(tonumber(oct, 8)))
+          i = i + 4
+        else
+          table.insert(result, next_char)
+          i = i + 2
+        end
+      else
+        table.insert(result, next_char)
+        i = i + 2
+      end
+    else
+      table.insert(result, inner:sub(i, i))
+      i = i + 1
+    end
+  end
+  return table.concat(result)
+end
+
 ---@param line string
 ---@return string?, string?, string?
 local function parse_file_line(line)
   local old, new = line:match('^R%d*%s+(.-)%s+->%s+(.+)$')
   if old and new then
-    return vim.trim(new), vim.trim(old), 'R'
+    return unquote(vim.trim(new)), unquote(vim.trim(old)), 'R'
   end
 
   local status, filename = line:match('^([MADRCU?])[MADRCU%s]*%s+(.+)$')
   if status and filename then
-    return vim.trim(filename), nil, status
+    return unquote(vim.trim(filename)), nil, status
   end
 
   return nil, nil, nil
diff --git a/lua/diffs/highlight.lua b/lua/diffs/highlight.lua
index 6cdfe92..d2f65e9 100644
--- a/lua/diffs/highlight.lua
+++ b/lua/diffs/highlight.lua
@@ -3,38 +3,6 @@ local M = {}
 local dbg = require('diffs.log').dbg
 local diff = require('diffs.diff')
 
----@param filepath string
----@param from_line integer
----@param count integer
----@return string[]
-local function read_line_range(filepath, from_line, count)
-  if count <= 0 then
-    return {}
-  end
-  local f = io.open(filepath, 'r')
-  if not f then
-    return {}
-  end
-  local result = {}
-  local line_num = 0
-  for line in f:lines() do
-    line_num = line_num + 1
-    if line_num >= from_line then
-      table.insert(result, line)
-      if #result >= count then
-        break
-      end
-    end
-  end
-  f:close()
-  return result
-end
-
-local PRIORITY_CLEAR = 198
-local PRIORITY_SYNTAX = 199
-local PRIORITY_LINE_BG = 200
-local PRIORITY_CHAR_BG = 201
-
 ---@param bufnr integer
 ---@param ns integer
 ---@param hunk diffs.Hunk
@@ -42,8 +10,9 @@ local PRIORITY_CHAR_BG = 201
 ---@param text string
 ---@param lang string
 ---@param context_lines? string[]
+---@param priorities diffs.PrioritiesConfig
 ---@return integer
-local function highlight_text(bufnr, ns, hunk, col_offset, text, lang, context_lines)
+local function highlight_text(bufnr, ns, hunk, col_offset, text, lang, context_lines, priorities)
   local parse_text = text
   if context_lines and #context_lines > 0 then
     parse_text = text .. '\n' .. table.concat(context_lines, '\n')
@@ -77,7 +46,7 @@ local function highlight_text(bufnr, ns, hunk, col_offset, text, lang, context_l
       local buf_sc = col_offset + sc
       local buf_ec = col_offset + ec
 
-      local priority = lang == 'diff' and (tonumber(metadata.priority) or 100) or PRIORITY_SYNTAX
+      local priority = lang == 'diff' and (tonumber(metadata.priority) or 100) or priorities.syntax
 
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_sr, buf_sc, {
         end_row = buf_er,
@@ -103,6 +72,7 @@ end
 ---@param line_map table<integer, integer>
 ---@param col_offset integer
 ---@param covered_lines? table<integer, true>
+---@param priorities diffs.PrioritiesConfig
 ---@return integer
 local function highlight_treesitter(
   bufnr,
@@ -111,7 +81,8 @@ local function highlight_treesitter(
   lang,
   line_map,
   col_offset,
-  covered_lines
+  covered_lines,
+  priorities
 )
   local code = table.concat(code_lines, '\n')
   if code == '' then
@@ -152,7 +123,7 @@ local function highlight_treesitter(
           local buf_ec = ec + col_offset
 
           local priority = tree_lang == 'diff' and (tonumber(metadata.priority) or 100)
-            or PRIORITY_SYNTAX
+            or priorities.syntax
 
           pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_sr, buf_sc, {
             end_row = buf_er,
@@ -219,8 +190,17 @@ end
 ---@param code_lines string[]
 ---@param covered_lines? table<integer, true>
 ---@param leading_offset? integer
+---@param priorities diffs.PrioritiesConfig
 ---@return integer
-local function highlight_vim_syntax(bufnr, ns, hunk, code_lines, covered_lines, leading_offset)
+local function highlight_vim_syntax(
+  bufnr,
+  ns,
+  hunk,
+  code_lines,
+  covered_lines,
+  leading_offset,
+  priorities
+)
   local ft = hunk.ft
   if not ft then
     return 0
@@ -267,7 +247,7 @@ local function highlight_vim_syntax(bufnr, ns, hunk, code_lines, covered_lines,
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_line, span.col_start, {
         end_col = span.col_end,
         hl_group = span.hl_name,
-        priority = PRIORITY_SYNTAX,
+        priority = priorities.syntax,
       })
       extmark_count = extmark_count + 1
       if covered_lines then
@@ -284,6 +264,7 @@ end
 ---@param hunk diffs.Hunk
 ---@param opts diffs.HunkOpts
 function M.highlight_hunk(bufnr, ns, hunk, opts)
+  local p = opts.highlights.priorities
   local use_ts = hunk.lang and opts.highlights.treesitter.enabled
   local use_vim = not use_ts and hunk.ft and opts.highlights.vim.enabled
 
@@ -303,21 +284,6 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
   ---@type table<integer, true>
   local covered_lines = {}
 
-  local ctx_cfg = opts.highlights.context
-  local context = (ctx_cfg and ctx_cfg.enabled) and ctx_cfg.lines or 0
-  local leading = {}
-  local trailing = {}
-  if (use_ts or use_vim) and context > 0 and hunk.file_new_start and hunk.repo_root then
-    local filepath = vim.fs.joinpath(hunk.repo_root, hunk.filename)
-    local lead_from = math.max(1, hunk.file_new_start - context)
-    local lead_count = hunk.file_new_start - lead_from
-    if lead_count > 0 then
-      leading = read_line_range(filepath, lead_from, lead_count)
-    end
-    local trail_from = hunk.file_new_start + (hunk.file_new_count or 0)
-    trailing = read_line_range(filepath, trail_from, context)
-  end
-
   local extmark_count = 0
   if use_ts then
     ---@type string[]
@@ -329,11 +295,6 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
     ---@type table<integer, integer>
     local old_map = {}
 
-    for _, pad_line in ipairs(leading) do
-      table.insert(new_code, pad_line)
-      table.insert(old_code, pad_line)
-    end
-
     for i, line in ipairs(hunk.lines) do
       local prefix = line:sub(1, 1)
       local stripped = line:sub(2)
@@ -352,21 +313,17 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
       end
     end
 
-    for _, pad_line in ipairs(trailing) do
-      table.insert(new_code, pad_line)
-      table.insert(old_code, pad_line)
-    end
-
-    extmark_count = highlight_treesitter(bufnr, ns, new_code, hunk.lang, new_map, 1, covered_lines)
+    extmark_count =
+      highlight_treesitter(bufnr, ns, new_code, hunk.lang, new_map, 1, covered_lines, p)
     extmark_count = extmark_count
-      + highlight_treesitter(bufnr, ns, old_code, hunk.lang, old_map, 1, covered_lines)
+      + highlight_treesitter(bufnr, ns, old_code, hunk.lang, old_map, 1, covered_lines, p)
 
     if hunk.header_context and hunk.header_context_col then
       local header_line = hunk.start_line - 1
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, header_line, hunk.header_context_col, {
         end_col = hunk.header_context_col + #hunk.header_context,
         hl_group = 'DiffsClear',
-        priority = PRIORITY_CLEAR,
+        priority = p.clear,
       })
       local header_extmarks = highlight_text(
         bufnr,
@@ -375,7 +332,8 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
         hunk.header_context_col,
         hunk.header_context,
         hunk.lang,
-        new_code
+        new_code,
+        p
       )
       if header_extmarks > 0 then
         dbg('header %s:%d applied %d extmarks', hunk.filename, hunk.start_line, header_extmarks)
@@ -385,16 +343,10 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
   elseif use_vim then
     ---@type string[]
     local code_lines = {}
-    for _, pad_line in ipairs(leading) do
-      table.insert(code_lines, pad_line)
-    end
     for _, line in ipairs(hunk.lines) do
       table.insert(code_lines, line:sub(2))
     end
-    for _, pad_line in ipairs(trailing) do
-      table.insert(code_lines, pad_line)
-    end
-    extmark_count = highlight_vim_syntax(bufnr, ns, hunk, code_lines, covered_lines, #leading)
+    extmark_count = highlight_vim_syntax(bufnr, ns, hunk, code_lines, covered_lines, 0, p)
   end
 
   if
@@ -409,7 +361,7 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
       header_map[i] = hunk.header_start_line - 1 + i
     end
     extmark_count = extmark_count
-      + highlight_treesitter(bufnr, ns, hunk.header_lines, 'diff', header_map, 0)
+      + highlight_treesitter(bufnr, ns, hunk.header_lines, 'diff', header_map, 0, nil, p)
   end
 
   ---@type diffs.IntraChanges?
@@ -467,7 +419,7 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
       pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_line, 1, {
         end_col = line_len,
         hl_group = 'DiffsClear',
-        priority = PRIORITY_CLEAR,
+        priority = p.clear,
       })
     end
 
@@ -476,12 +428,12 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
         end_row = buf_line + 1,
         hl_group = line_hl,
         hl_eol = true,
-        priority = PRIORITY_LINE_BG,
+        priority = p.line_bg,
       })
       if opts.highlights.gutter then
         pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_line, 0, {
           number_hl_group = number_hl,
-          priority = PRIORITY_LINE_BG,
+          priority = p.line_bg,
         })
       end
     end
@@ -501,7 +453,7 @@ function M.highlight_hunk(bufnr, ns, hunk, opts)
         local ok, err = pcall(vim.api.nvim_buf_set_extmark, bufnr, ns, buf_line, span.col_start, {
           end_col = span.col_end,
           hl_group = char_hl,
-          priority = PRIORITY_CHAR_BG,
+          priority = p.char_bg,
         })
         if not ok then
           dbg('char extmark FAILED: %s', err)
diff --git a/lua/diffs/init.lua b/lua/diffs/init.lua
index 85dc879..00dddca 100644
--- a/lua/diffs/init.lua
+++ b/lua/diffs/init.lua
@@ -15,6 +15,12 @@
 ---@field enabled boolean
 ---@field lines integer
 
+---@class diffs.PrioritiesConfig
+---@field clear integer
+---@field syntax integer
+---@field line_bg integer
+---@field char_bg integer
+
 ---@class diffs.Highlights
 ---@field background boolean
 ---@field gutter boolean
@@ -24,6 +30,7 @@
 ---@field treesitter diffs.TreesitterConfig
 ---@field vim diffs.VimConfig
 ---@field intra diffs.IntraConfig
+---@field priorities diffs.PrioritiesConfig
 
 ---@class diffs.FugitiveConfig
 ---@field horizontal string|false
@@ -43,6 +50,7 @@
 ---@field show_virtual_text boolean
 ---@field format_virtual_text? fun(side: string, keymap: string|false): string?
 ---@field show_actions boolean
+---@field priority integer
 ---@field keymaps diffs.ConflictKeymaps
 
 ---@class diffs.Config
@@ -121,6 +129,12 @@ local default_config = {
       algorithm = 'default',
       max_lines = 500,
     },
+    priorities = {
+      clear = 198,
+      syntax = 199,
+      line_bg = 200,
+      char_bg = 201,
+    },
   },
   fugitive = {
     horizontal = 'du',
@@ -131,6 +145,7 @@ local default_config = {
     disable_diagnostics = true,
     show_virtual_text = true,
     show_actions = false,
+    priority = 200,
     keymaps = {
       ours = 'doo',
       theirs = 'dot',
@@ -328,6 +343,7 @@ local function init()
       ['highlights.treesitter'] = { opts.highlights.treesitter, 'table', true },
       ['highlights.vim'] = { opts.highlights.vim, 'table', true },
       ['highlights.intra'] = { opts.highlights.intra, 'table', true },
+      ['highlights.priorities'] = { opts.highlights.priorities, 'table', true },
     })
 
     if opts.highlights.context then
@@ -368,6 +384,15 @@ local function init()
         ['highlights.intra.max_lines'] = { opts.highlights.intra.max_lines, 'number', true },
       })
     end
+
+    if opts.highlights.priorities then
+      vim.validate({
+        ['highlights.priorities.clear'] = { opts.highlights.priorities.clear, 'number', true },
+        ['highlights.priorities.syntax'] = { opts.highlights.priorities.syntax, 'number', true },
+        ['highlights.priorities.line_bg'] = { opts.highlights.priorities.line_bg, 'number', true },
+        ['highlights.priorities.char_bg'] = { opts.highlights.priorities.char_bg, 'number', true },
+      })
+    end
   end
 
   if opts.fugitive then
@@ -396,6 +421,7 @@ local function init()
       ['conflict.show_virtual_text'] = { opts.conflict.show_virtual_text, 'boolean', true },
       ['conflict.format_virtual_text'] = { opts.conflict.format_virtual_text, 'function', true },
       ['conflict.show_actions'] = { opts.conflict.show_actions, 'boolean', true },
+      ['conflict.priority'] = { opts.conflict.priority, 'number', true },
       ['conflict.keymaps'] = { opts.conflict.keymaps, 'table', true },
     })
 
@@ -457,6 +483,17 @@ local function init()
   then
     error('diffs: highlights.blend_alpha must be >= 0 and <= 1')
   end
+  if opts.highlights and opts.highlights.priorities then
+    for _, key in ipairs({ 'clear', 'syntax', 'line_bg', 'char_bg' }) do
+      local v = opts.highlights.priorities[key]
+      if v and v < 0 then
+        error('diffs: highlights.priorities.' .. key .. ' must be >= 0')
+      end
+    end
+  end
+  if opts.conflict and opts.conflict.priority and opts.conflict.priority < 0 then
+    error('diffs: conflict.priority must be >= 0')
+  end
 
   config = vim.tbl_deep_extend('force', default_config, opts)
   log.set_enabled(config.debug)
diff --git a/lua/diffs/merge.lua b/lua/diffs/merge.lua
index 4332220..daf72ac 100644
--- a/lua/diffs/merge.lua
+++ b/lua/diffs/merge.lua
@@ -298,6 +298,7 @@ function M.goto_next(bufnr)
     end
   end
 
+  vim.notify('[diffs.nvim]: wrapped to first hunk', vim.log.levels.INFO)
   vim.api.nvim_win_set_cursor(0, { candidates[1].start_line + 1, 0 })
 end
 
@@ -335,6 +336,7 @@ function M.goto_prev(bufnr)
     end
   end
 
+  vim.notify('[diffs.nvim]: wrapped to last hunk', vim.log.levels.INFO)
   vim.api.nvim_win_set_cursor(0, { candidates[#candidates].start_line + 1, 0 })
 end
 
@@ -378,6 +380,9 @@ end
 ---@param bufnr integer
 ---@param config diffs.ConflictConfig
 function M.setup_keymaps(bufnr, config)
+  resolved_hunks[bufnr] = nil
+  vim.api.nvim_buf_clear_namespace(bufnr, ns, 0, -1)
+
   local km = config.keymaps
 
   local maps = {
diff --git a/spec/conflict_spec.lua b/spec/conflict_spec.lua
index b163960..dd190c9 100644
--- a/spec/conflict_spec.lua
+++ b/spec/conflict_spec.lua
@@ -235,29 +235,6 @@ describe('conflict', function()
       helpers.delete_buffer(bufnr)
     end)
 
-    it('does not apply virtual text when disabled', function()
-      local bufnr = create_file_buffer({
-        '<<<<<<< HEAD',
-        'local x = 1',
-        '=======',
-        'local x = 2',
-        '>>>>>>> feature',
-      })
-
-      conflict.attach(bufnr, default_config({ show_virtual_text = false }))
-
-      local extmarks = get_extmarks(bufnr)
-      local virt_text_count = 0
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].virt_text then
-          virt_text_count = virt_text_count + 1
-        end
-      end
-      assert.are.equal(0, virt_text_count)
-
-      helpers.delete_buffer(bufnr)
-    end)
-
     it('applies number_hl_group to content lines', function()
       local bufnr = create_file_buffer({
         '<<<<<<< HEAD',
@@ -532,6 +509,33 @@ describe('conflict', function()
       helpers.delete_buffer(bufnr)
     end)
 
+    it('goto_next notifies on wrap-around', function()
+      local bufnr = create_file_buffer({
+        '<<<<<<< HEAD',
+        'a',
+        '=======',
+        'b',
+        '>>>>>>> feat',
+      })
+      vim.api.nvim_set_current_buf(bufnr)
+      vim.api.nvim_win_set_cursor(0, { 5, 0 })
+
+      local notified = false
+      local orig_notify = vim.notify
+      vim.notify = function(msg)
+        if msg:match('wrapped to first conflict') then
+          notified = true
+        end
+      end
+
+      conflict.goto_next(bufnr)
+      vim.notify = orig_notify
+
+      assert.is_true(notified)
+
+      helpers.delete_buffer(bufnr)
+    end)
+
     it('goto_prev jumps to previous conflict', function()
       local bufnr = create_file_buffer({
         '<<<<<<< HEAD',
@@ -576,6 +580,33 @@ describe('conflict', function()
       helpers.delete_buffer(bufnr)
     end)
 
+    it('goto_prev notifies on wrap-around', function()
+      local bufnr = create_file_buffer({
+        '<<<<<<< HEAD',
+        'a',
+        '=======',
+        'b',
+        '>>>>>>> feat',
+      })
+      vim.api.nvim_set_current_buf(bufnr)
+      vim.api.nvim_win_set_cursor(0, { 1, 0 })
+
+      local notified = false
+      local orig_notify = vim.notify
+      vim.notify = function(msg)
+        if msg:match('wrapped to last conflict') then
+          notified = true
+        end
+      end
+
+      conflict.goto_prev(bufnr)
+      vim.notify = orig_notify
+
+      assert.is_true(notified)
+
+      helpers.delete_buffer(bufnr)
+    end)
+
     it('goto_next does nothing with no conflicts', function()
       local bufnr = create_file_buffer({ 'normal line' })
       vim.api.nvim_set_current_buf(bufnr)
diff --git a/spec/fugitive_spec.lua b/spec/fugitive_spec.lua
index 244e1b7..95b40a3 100644
--- a/spec/fugitive_spec.lua
+++ b/spec/fugitive_spec.lua
@@ -87,28 +87,6 @@ describe('fugitive', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('parses added file', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'A  newfile.lua',
-      })
-      local filename, section = fugitive.get_file_at_line(buf, 2)
-      assert.equals('newfile.lua', filename)
-      assert.equals('staged', section)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('parses deleted file', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'D  oldfile.lua',
-      })
-      local filename, section = fugitive.get_file_at_line(buf, 2)
-      assert.equals('oldfile.lua', filename)
-      assert.equals('staged', section)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
     it('parses renamed file and returns both names', function()
       local buf = create_status_buffer({
         'Staged (1)',
@@ -157,28 +135,6 @@ describe('fugitive', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('handles renamed file in subdirectory', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'R  src/old.lua -> src/new.lua',
-      })
-      local filename, _, _, old_filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('src/new.lua', filename)
-      assert.equals('src/old.lua', old_filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles renamed file moved to different directory', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'R  old/file.lua -> new/file.lua',
-      })
-      local filename, _, _, old_filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('new/file.lua', filename)
-      assert.equals('old/file.lua', old_filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
     it('KNOWN LIMITATION: filename containing arrow parsed incorrectly', function()
       local buf = create_status_buffer({
         'Staged (1)',
@@ -190,77 +146,54 @@ describe('fugitive', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('handles double extensions', function()
+    it('unquotes git-quoted filenames with spaces', function()
+      local buf = create_status_buffer({
+        'Unstaged (1)',
+        'M  "path with spaces/file.lua"',
+      })
+      local filename = fugitive.get_file_at_line(buf, 2)
+      assert.equals('path with spaces/file.lua', filename)
+      vim.api.nvim_buf_delete(buf, { force = true })
+    end)
+
+    it('unquotes escaped quotes in filenames', function()
+      local buf = create_status_buffer({
+        'Unstaged (1)',
+        'M  "file\\"name.lua"',
+      })
+      local filename = fugitive.get_file_at_line(buf, 2)
+      assert.equals('file"name.lua', filename)
+      vim.api.nvim_buf_delete(buf, { force = true })
+    end)
+
+    it('unquotes octal escapes in filenames', function()
+      local buf = create_status_buffer({
+        'Unstaged (1)',
+        'M  "\\303\\251le.lua"',
+      })
+      local filename = fugitive.get_file_at_line(buf, 2)
+      assert.equals('\195\169le.lua', filename)
+      vim.api.nvim_buf_delete(buf, { force = true })
+    end)
+
+    it('passes through unquoted filenames unchanged', function()
+      local buf = create_status_buffer({
+        'Unstaged (1)',
+        'M  normal.lua',
+      })
+      local filename = fugitive.get_file_at_line(buf, 2)
+      assert.equals('normal.lua', filename)
+      vim.api.nvim_buf_delete(buf, { force = true })
+    end)
+
+    it('unquotes renamed files with quotes', function()
       local buf = create_status_buffer({
         'Staged (1)',
-        'M  test.spec.lua',
+        'R100 "old name.lua" -> "new name.lua"',
       })
       local filename, _, _, old_filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('test.spec.lua', filename)
-      assert.is_nil(old_filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles hyphenated filenames', function()
-      local buf = create_status_buffer({
-        'Unstaged (1)',
-        'M  my-component-test.lua',
-      })
-      local filename, section = fugitive.get_file_at_line(buf, 2)
-      assert.equals('my-component-test.lua', filename)
-      assert.equals('unstaged', section)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles underscores and numbers', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'A  test_file_123.lua',
-      })
-      local filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('test_file_123.lua', filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles dotfiles', function()
-      local buf = create_status_buffer({
-        'Unstaged (1)',
-        'M  .gitignore',
-      })
-      local filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('.gitignore', filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles renamed with complex names', function()
-      local buf = create_status_buffer({
-        'Staged (1)',
-        'R  src/old-file.spec.lua -> src/new-file.spec.lua',
-      })
-      local filename, _, _, old_filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('src/new-file.spec.lua', filename)
-      assert.equals('src/old-file.spec.lua', old_filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('handles deeply nested paths', function()
-      local buf = create_status_buffer({
-        'Unstaged (1)',
-        'M  lua/diffs/ui/components/diff-view.lua',
-      })
-      local filename = fugitive.get_file_at_line(buf, 2)
-      assert.equals('lua/diffs/ui/components/diff-view.lua', filename)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('parses untracked file', function()
-      local buf = create_status_buffer({
-        'Untracked (1)',
-        '?  untracked.lua',
-      })
-      local filename, section = fugitive.get_file_at_line(buf, 2)
-      assert.equals('untracked.lua', filename)
-      assert.equals('untracked', section)
+      assert.equals('new name.lua', filename)
+      assert.equals('old name.lua', old_filename)
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
@@ -321,30 +254,6 @@ describe('fugitive', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('detects section header for Unstaged', function()
-      local buf = create_status_buffer({
-        'Unstaged (3)',
-        'M  file1.lua',
-      })
-      local filename, section, is_header = fugitive.get_file_at_line(buf, 1)
-      assert.is_nil(filename)
-      assert.equals('unstaged', section)
-      assert.is_true(is_header)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
-    it('detects section header for Untracked', function()
-      local buf = create_status_buffer({
-        'Untracked (1)',
-        '?  newfile.lua',
-      })
-      local filename, section, is_header = fugitive.get_file_at_line(buf, 1)
-      assert.is_nil(filename)
-      assert.equals('untracked', section)
-      assert.is_true(is_header)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
     it('returns is_header=false for file lines', function()
       local buf = create_status_buffer({
         'Staged (1)',
@@ -406,22 +315,6 @@ describe('fugitive', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('returns hunk header and offset for - line', function()
-      local buf = create_status_buffer({
-        'Unstaged (1)',
-        'M  file.lua',
-        '@@ -1,3 +1,3 @@',
-        ' local M = {}',
-        '-local old = false',
-        ' return M',
-      })
-      local pos = fugitive.get_hunk_position(buf, 5)
-      assert.is_not_nil(pos)
-      assert.equals('@@ -1,3 +1,3 @@', pos.hunk_header)
-      assert.equals(2, pos.offset)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
     it('returns hunk header and offset for context line', function()
       local buf = create_status_buffer({
         'Unstaged (1)',
diff --git a/spec/highlight_spec.lua b/spec/highlight_spec.lua
index 0b9051e..4064857 100644
--- a/spec/highlight_spec.lua
+++ b/spec/highlight_spec.lua
@@ -51,6 +51,12 @@ describe('highlight', function()
             algorithm = 'default',
             max_lines = 500,
           },
+          priorities = {
+            clear = 198,
+            syntax = 199,
+            line_bg = 200,
+            char_bg = 201,
+          },
         },
       }
       if overrides then
@@ -64,27 +70,6 @@ describe('highlight', function()
       return opts
     end
 
-    it('applies extmarks for lua code', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-
-      local extmarks = get_extmarks(bufnr)
-      assert.is_true(#extmarks > 0)
-      delete_buffer(bufnr)
-    end)
-
     it('applies DiffsClear extmarks to clear diff colors', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -190,36 +175,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('highlights header context when enabled', function()
-      local bufnr = create_buffer({
-        '@@ -10,3 +10,4 @@ function hello()',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        header_context = 'function hello()',
-        header_context_col = 18,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-
-      local extmarks = get_extmarks(bufnr)
-      local has_header_extmark = false
-      for _, mark in ipairs(extmarks) do
-        if mark[2] == 0 then
-          has_header_extmark = true
-          break
-        end
-      end
-      assert.is_true(has_header_extmark)
-      delete_buffer(bufnr)
-    end)
-
     it('highlights function keyword in header context', function()
       local bufnr = create_buffer({
         '@@ -5,3 +5,4 @@ function M.setup()',
@@ -280,44 +235,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('handles empty hunk lines', function()
-      local bufnr = create_buffer({
-        '@@ -1,0 +1,0 @@',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = {},
-      }
-
-      assert.has_no.errors(function()
-        highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-      end)
-      delete_buffer(bufnr)
-    end)
-
-    it('handles code that is just whitespace', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' ',
-        '+  ',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' ', '+  ' },
-      }
-
-      assert.has_no.errors(function()
-        highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-      end)
-      delete_buffer(bufnr)
-    end)
-
     it('applies overlay extmarks when hide_prefix enabled', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -345,33 +262,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('does not apply overlay extmarks when hide_prefix disabled', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(bufnr, ns, hunk, default_opts({ hide_prefix = false }))
-
-      local extmarks = get_extmarks(bufnr)
-      local overlay_count = 0
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].virt_text_pos == 'overlay' then
-          overlay_count = overlay_count + 1
-        end
-      end
-      assert.are.equal(0, overlay_count)
-      delete_buffer(bufnr)
-    end)
-
     it('applies DiffAdd background to + lines when background enabled', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -438,39 +328,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('does not apply background when background disabled', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { background = false } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local has_line_hl = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and (mark[4].hl_group == 'DiffsAdd' or mark[4].hl_group == 'DiffsDelete') then
-          has_line_hl = true
-          break
-        end
-      end
-      assert.is_false(has_line_hl)
-      delete_buffer(bufnr)
-    end)
-
     it('applies number_hl_group when gutter enabled', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -504,72 +361,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('does not apply number_hl_group when gutter disabled', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { background = true, gutter = false } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local has_number_hl = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].number_hl_group then
-          has_number_hl = true
-          break
-        end
-      end
-      assert.is_false(has_number_hl)
-      delete_buffer(bufnr)
-    end)
-
-    it('skips treesitter highlights when treesitter disabled', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { treesitter = { enabled = false }, background = true } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local has_ts_highlight = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].hl_group and mark[4].hl_group:match('^@') then
-          has_ts_highlight = true
-          break
-        end
-      end
-      assert.is_false(has_ts_highlight)
-      delete_buffer(bufnr)
-    end)
-
     it('still applies background when treesitter disabled', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -654,40 +445,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('skips vim fallback when vim.enabled is false', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        ft = 'abap',
-        lang = nil,
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { vim = { enabled = false } } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local has_syntax_hl = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].hl_group and mark[4].hl_group ~= 'DiffsClear' then
-          has_syntax_hl = true
-          break
-        end
-      end
-      assert.is_false(has_syntax_hl)
-      delete_buffer(bufnr)
-    end)
-
     it('respects vim.max_lines', function()
       local lines = { '@@ -1,100 +1,101 @@' }
       local hunk_lines = {}
@@ -900,92 +657,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('line bg priority > DiffsClear priority', function()
-      local bufnr = create_buffer({
-        '@@ -1,2 +1,1 @@',
-        '-local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { '-local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { background = true } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local clear_priority = nil
-      local line_bg_priority = nil
-      for _, mark in ipairs(extmarks) do
-        local d = mark[4]
-        if d and d.hl_group == 'DiffsClear' then
-          clear_priority = d.priority
-        end
-        if d and (d.hl_group == 'DiffsAdd' or d.hl_group == 'DiffsDelete') then
-          line_bg_priority = d.priority
-        end
-      end
-      assert.is_not_nil(clear_priority)
-      assert.is_not_nil(line_bg_priority)
-      assert.is_true(line_bg_priority > clear_priority)
-      delete_buffer(bufnr)
-    end)
-
-    it('char-level extmarks have higher priority than line bg', function()
-      vim.api.nvim_set_hl(0, 'DiffsAddText', { bg = 0x00FF00 })
-      vim.api.nvim_set_hl(0, 'DiffsDeleteText', { bg = 0xFF0000 })
-
-      local bufnr = create_buffer({
-        '@@ -1,2 +1,2 @@',
-        '-local x = 1',
-        '+local x = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { '-local x = 1', '+local x = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({
-          highlights = {
-            background = true,
-            intra = { enabled = true, algorithm = 'default', max_lines = 500 },
-          },
-        })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      local line_bg_priority = nil
-      local char_bg_priority = nil
-      for _, mark in ipairs(extmarks) do
-        local d = mark[4]
-        if d and (d.hl_group == 'DiffsAdd' or d.hl_group == 'DiffsDelete') then
-          line_bg_priority = d.priority
-        end
-        if d and (d.hl_group == 'DiffsAddText' or d.hl_group == 'DiffsDeleteText') then
-          char_bg_priority = d.priority
-        end
-      end
-      assert.is_not_nil(line_bg_priority)
-      assert.is_not_nil(char_bg_priority)
-      assert.is_true(char_bg_priority > line_bg_priority)
-      delete_buffer(bufnr)
-    end)
-
     it('creates char-level extmarks for changed characters', function()
       vim.api.nvim_set_hl(0, 'DiffsAddText', { bg = 0x00FF00 })
       vim.api.nvim_set_hl(0, 'DiffsDeleteText', { bg = 0xFF0000 })
@@ -1029,38 +700,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('does not create char-level extmarks when intra disabled', function()
-      local bufnr = create_buffer({
-        '@@ -1,2 +1,2 @@',
-        '-local x = 1',
-        '+local x = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { '-local x = 1', '+local x = 2' },
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({
-          highlights = { intra = { enabled = false, algorithm = 'default', max_lines = 500 } },
-        })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      for _, mark in ipairs(extmarks) do
-        local d = mark[4]
-        assert.is_not_equal('DiffsAddText', d and d.hl_group)
-        assert.is_not_equal('DiffsDeleteText', d and d.hl_group)
-      end
-      delete_buffer(bufnr)
-    end)
-
     it('does not create char-level extmarks for pure additions', function()
       vim.api.nvim_set_hl(0, 'DiffsAddText', { bg = 0x00FF00 })
 
@@ -1157,142 +796,6 @@ describe('highlight', function()
       delete_buffer(bufnr)
     end)
 
-    it('context padding produces no extmarks on padding lines', function()
-      local repo_root = '/tmp/diffs-test-context'
-      vim.fn.mkdir(repo_root, 'p')
-
-      local f = io.open(repo_root .. '/test.lua', 'w')
-      f:write('local M = {}\n')
-      f:write('function M.hello()\n')
-      f:write('  return "hi"\n')
-      f:write('end\n')
-      f:write('return M\n')
-      f:close()
-
-      local bufnr = create_buffer({
-        '@@ -3,1 +3,2 @@',
-        ' return "hi"',
-        '+"bye"',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { '  return "hi"', '+"bye"' },
-        file_old_start = 3,
-        file_old_count = 1,
-        file_new_start = 3,
-        file_new_count = 2,
-        repo_root = repo_root,
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { context = { enabled = true, lines = 25 } } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      for _, mark in ipairs(extmarks) do
-        local row = mark[2]
-        assert.is_true(row >= 1 and row <= 2)
-      end
-
-      delete_buffer(bufnr)
-      os.remove(repo_root .. '/test.lua')
-      vim.fn.delete(repo_root, 'rf')
-    end)
-
-    it('context disabled matches behavior without padding', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-        file_new_start = 1,
-        file_new_count = 2,
-        repo_root = '/nonexistent',
-      }
-
-      highlight.highlight_hunk(
-        bufnr,
-        ns,
-        hunk,
-        default_opts({ highlights = { context = { enabled = false, lines = 0 } } })
-      )
-
-      local extmarks = get_extmarks(bufnr)
-      assert.is_true(#extmarks > 0)
-      delete_buffer(bufnr)
-    end)
-
-    it('gracefully handles missing file for context padding', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-        file_new_start = 1,
-        file_new_count = 2,
-        repo_root = '/nonexistent/path',
-      }
-
-      assert.has_no.errors(function()
-        highlight.highlight_hunk(
-          bufnr,
-          ns,
-          hunk,
-          default_opts({ highlights = { context = { enabled = true, lines = 25 } } })
-        )
-      end)
-
-      local extmarks = get_extmarks(bufnr)
-      assert.is_true(#extmarks > 0)
-      delete_buffer(bufnr)
-    end)
-
-    it('highlights treesitter injections', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+vim.cmd([[ echo 1 ]])',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+vim.cmd([[ echo 1 ]])' },
-      }
-
-      highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-
-      local extmarks = get_extmarks(bufnr)
-      local has_vim_capture = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].hl_group and mark[4].hl_group:match('^@.*%.vim$') then
-          has_vim_capture = true
-          break
-        end
-      end
-      assert.is_true(has_vim_capture)
-      delete_buffer(bufnr)
-    end)
-
     it('includes captures from both base and injected languages', function()
       local bufnr = create_buffer({
         '@@ -1,1 +1,2 @@',
@@ -1386,6 +889,7 @@ describe('highlight', function()
           context = { enabled = false, lines = 0 },
           treesitter = { enabled = true, max_lines = 500 },
           vim = { enabled = false, max_lines = 200 },
+          priorities = { clear = 198, syntax = 199, line_bg = 200, char_bg = 201 },
         },
       }
     end
@@ -1468,47 +972,6 @@ describe('highlight', function()
       assert.are.equal(0, header_extmarks)
       delete_buffer(bufnr)
     end)
-
-    it('does not apply header highlights when treesitter disabled', function()
-      local bufnr = create_buffer({
-        'diff --git a/parser.lua b/parser.lua',
-        'index 3e8afa0..018159c 100644',
-        '--- a/parser.lua',
-        '+++ b/parser.lua',
-        '@@ -1,2 +1,3 @@',
-        ' local M = {}',
-        '+local x = 1',
-      })
-
-      local hunk = {
-        filename = 'parser.lua',
-        lang = 'lua',
-        start_line = 5,
-        lines = { ' local M = {}', '+local x = 1' },
-        header_start_line = 1,
-        header_lines = {
-          'diff --git a/parser.lua b/parser.lua',
-          'index 3e8afa0..018159c 100644',
-          '--- a/parser.lua',
-          '+++ b/parser.lua',
-        },
-      }
-
-      local opts = default_opts()
-      opts.highlights.treesitter.enabled = false
-
-      highlight.highlight_hunk(bufnr, ns, hunk, opts)
-
-      local extmarks = get_extmarks(bufnr)
-      local header_extmarks = 0
-      for _, mark in ipairs(extmarks) do
-        if mark[2] < 4 and mark[4] and mark[4].hl_group and mark[4].hl_group:match('^@') then
-          header_extmarks = header_extmarks + 1
-        end
-      end
-      assert.are.equal(0, header_extmarks)
-      delete_buffer(bufnr)
-    end)
   end)
 
   describe('extmark priority', function()
@@ -1543,40 +1006,11 @@ describe('highlight', function()
           context = { enabled = false, lines = 0 },
           treesitter = { enabled = true, max_lines = 500 },
           vim = { enabled = false, max_lines = 200 },
+          priorities = { clear = 198, syntax = 199, line_bg = 200, char_bg = 201 },
         },
       }
     end
 
-    it('uses priority 199 for code languages', function()
-      local bufnr = create_buffer({
-        '@@ -1,1 +1,2 @@',
-        ' local x = 1',
-        '+local y = 2',
-      })
-
-      local hunk = {
-        filename = 'test.lua',
-        lang = 'lua',
-        start_line = 1,
-        lines = { ' local x = 1', '+local y = 2' },
-      }
-
-      highlight.highlight_hunk(bufnr, ns, hunk, default_opts())
-
-      local extmarks = get_extmarks(bufnr)
-      local has_priority_199 = false
-      for _, mark in ipairs(extmarks) do
-        if mark[4] and mark[4].hl_group and mark[4].hl_group:match('^@.*%.lua$') then
-          if mark[4].priority == 199 then
-            has_priority_199 = true
-            break
-          end
-        end
-      end
-      assert.is_true(has_priority_199)
-      delete_buffer(bufnr)
-    end)
-
     it('uses treesitter priority for diff language', function()
       local bufnr = create_buffer({
         'diff --git a/test.lua b/test.lua',
diff --git a/spec/merge_spec.lua b/spec/merge_spec.lua
index 7d5019b..6cb9f7e 100644
--- a/spec/merge_spec.lua
+++ b/spec/merge_spec.lua
@@ -509,6 +509,44 @@ describe('merge', function()
       helpers.delete_buffer(w_bufnr)
     end)
 
+    it('goto_next notifies on wrap-around', function()
+      local working_path = '/tmp/diffs_test_wrap_notify.lua'
+      local w_bufnr = create_working_buffer({
+        '<<<<<<< HEAD',
+        'local x = 1',
+        '=======',
+        'local x = 2',
+        '>>>>>>> feature',
+      }, working_path)
+
+      local d_bufnr = create_diff_buffer({
+        'diff --git a/file.lua b/file.lua',
+        '--- a/file.lua',
+        '+++ b/file.lua',
+        '@@ -1,1 +1,1 @@',
+        '-local x = 1',
+        '+local x = 2',
+      }, working_path)
+      vim.api.nvim_set_current_buf(d_bufnr)
+      vim.api.nvim_win_set_cursor(0, { 6, 0 })
+
+      local notified = false
+      local orig_notify = vim.notify
+      vim.notify = function(msg)
+        if msg:match('wrapped to first hunk') then
+          notified = true
+        end
+      end
+
+      merge.goto_next(d_bufnr)
+      vim.notify = orig_notify
+
+      assert.is_true(notified)
+
+      helpers.delete_buffer(d_bufnr)
+      helpers.delete_buffer(w_bufnr)
+    end)
+
     it('goto_prev jumps to previous conflict hunk', function()
       local working_path = '/tmp/diffs_test_prev.lua'
       local w_bufnr = create_working_buffer({
@@ -577,6 +615,44 @@ describe('merge', function()
       helpers.delete_buffer(w_bufnr)
     end)
 
+    it('goto_prev notifies on wrap-around', function()
+      local working_path = '/tmp/diffs_test_prev_wrap_notify.lua'
+      local w_bufnr = create_working_buffer({
+        '<<<<<<< HEAD',
+        'local x = 1',
+        '=======',
+        'local x = 2',
+        '>>>>>>> feature',
+      }, working_path)
+
+      local d_bufnr = create_diff_buffer({
+        'diff --git a/file.lua b/file.lua',
+        '--- a/file.lua',
+        '+++ b/file.lua',
+        '@@ -1,1 +1,1 @@',
+        '-local x = 1',
+        '+local x = 2',
+      }, working_path)
+      vim.api.nvim_set_current_buf(d_bufnr)
+      vim.api.nvim_win_set_cursor(0, { 1, 0 })
+
+      local notified = false
+      local orig_notify = vim.notify
+      vim.notify = function(msg)
+        if msg:match('wrapped to last hunk') then
+          notified = true
+        end
+      end
+
+      merge.goto_prev(d_bufnr)
+      vim.notify = orig_notify
+
+      assert.is_true(notified)
+
+      helpers.delete_buffer(d_bufnr)
+      helpers.delete_buffer(w_bufnr)
+    end)
+
     it('skips resolved hunks', function()
       local working_path = '/tmp/diffs_test_skip_resolved.lua'
       local w_bufnr = create_working_buffer({
@@ -650,8 +726,19 @@ describe('merge', function()
 
       helpers.delete_buffer(d_bufnr)
     end)
+  end)
+
+  describe('setup_keymaps', function()
+    it('clears resolved state on re-init', function()
+      local working_path = '/tmp/diffs_test_reinit.lua'
+      local w_bufnr = create_working_buffer({
+        '<<<<<<< HEAD',
+        'local x = 1',
+        '=======',
+        'local x = 2',
+        '>>>>>>> feature',
+      }, working_path)
 
-    it('does not add hints when show_virtual_text is false', function()
       local d_bufnr = create_diff_buffer({
         'diff --git a/file.lua b/file.lua',
         '--- a/file.lua',
@@ -659,21 +746,37 @@ describe('merge', function()
         '@@ -1,1 +1,1 @@',
         '-local x = 1',
         '+local x = 2',
-      })
+      }, working_path)
+      vim.api.nvim_set_current_buf(d_bufnr)
+      vim.api.nvim_win_set_cursor(0, { 5, 0 })
 
-      merge.setup_keymaps(d_bufnr, default_config({ show_virtual_text = false }))
+      local cfg = default_config()
+      merge.resolve_ours(d_bufnr, cfg)
+      assert.is_true(merge.is_resolved(d_bufnr, 1))
 
       local extmarks =
         vim.api.nvim_buf_get_extmarks(d_bufnr, merge.get_namespace(), 0, -1, { details = true })
-      local virt_text_count = 0
+      assert.is_true(#extmarks > 0)
+
+      merge.setup_keymaps(d_bufnr, cfg)
+
+      assert.is_false(merge.is_resolved(d_bufnr, 1))
+      extmarks =
+        vim.api.nvim_buf_get_extmarks(d_bufnr, merge.get_namespace(), 0, -1, { details = true })
+      local resolved_count = 0
       for _, mark in ipairs(extmarks) do
         if mark[4] and mark[4].virt_text then
-          virt_text_count = virt_text_count + 1
+          for _, chunk in ipairs(mark[4].virt_text) do
+            if chunk[1]:match('resolved') then
+              resolved_count = resolved_count + 1
+            end
+          end
         end
       end
-      assert.are.equal(0, virt_text_count)
+      assert.are.equal(0, resolved_count)
 
       helpers.delete_buffer(d_bufnr)
+      helpers.delete_buffer(w_bufnr)
     end)
   end)
 
@@ -694,18 +797,6 @@ describe('merge', function()
       vim.api.nvim_buf_delete(buf, { force = true })
     end)
 
-    it('parse_file_line returns status for modified files', function()
-      local fugitive = require('diffs.fugitive')
-      local buf = vim.api.nvim_create_buf(false, true)
-      vim.api.nvim_buf_set_lines(buf, 0, -1, false, {
-        'Unstaged (1)',
-        'M  file.lua',
-      })
-      local _, _, _, _, status = fugitive.get_file_at_line(buf, 2)
-      assert.are.equal('M', status)
-      vim.api.nvim_buf_delete(buf, { force = true })
-    end)
-
     it('walkback from hunk line propagates status', function()
       local fugitive = require('diffs.fugitive')
       local buf = vim.api.nvim_create_buf(false, true)
diff --git a/spec/parser_spec.lua b/spec/parser_spec.lua
index 11ac3be..32a3001 100644
--- a/spec/parser_spec.lua
+++ b/spec/parser_spec.lua
@@ -391,37 +391,6 @@ describe('parser', function()
       vim.fn.delete(repo_root, 'rf')
     end)
 
-    it('detects python from shebang without open buffer', function()
-      local repo_root = '/tmp/diffs-test-shebang-py'
-      vim.fn.mkdir(repo_root, 'p')
-
-      local file_path = repo_root .. '/deploy'
-      local f = io.open(file_path, 'w')
-      f:write('#!/usr/bin/env python3\n')
-      f:write('import sys\n')
-      f:write('print("hi")\n')
-      f:close()
-
-      local diff_buf = create_buffer({
-        'M deploy',
-        '@@ -1,2 +1,3 @@',
-        ' #!/usr/bin/env python3',
-        '+import sys',
-        ' print("hi")',
-      })
-      vim.api.nvim_buf_set_var(diff_buf, 'diffs_repo_root', repo_root)
-
-      local hunks = parser.parse_buffer(diff_buf)
-
-      assert.are.equal(1, #hunks)
-      assert.are.equal('deploy', hunks[1].filename)
-      assert.are.equal('python', hunks[1].ft)
-
-      delete_buffer(diff_buf)
-      os.remove(file_path)
-      vim.fn.delete(repo_root, 'rf')
-    end)
-
     it('extracts file line numbers from @@ header', function()
       local bufnr = create_buffer({
         'M lua/test.lua',
@@ -440,22 +409,6 @@ describe('parser', function()
       delete_buffer(bufnr)
     end)
 
-    it('extracts large line numbers from @@ header', function()
-      local bufnr = create_buffer({
-        'M lua/test.lua',
-        '@@ -100,20 +200,30 @@',
-        ' local M = {}',
-      })
-      local hunks = parser.parse_buffer(bufnr)
-
-      assert.are.equal(1, #hunks)
-      assert.are.equal(100, hunks[1].file_old_start)
-      assert.are.equal(20, hunks[1].file_old_count)
-      assert.are.equal(200, hunks[1].file_new_start)
-      assert.are.equal(30, hunks[1].file_new_count)
-      delete_buffer(bufnr)
-    end)
-
     it('defaults count to 1 when omitted in @@ header', function()
       local bufnr = create_buffer({
         'M lua/test.lua',
@@ -487,18 +440,5 @@ describe('parser', function()
       assert.are.equal('/tmp/test-repo', hunks[1].repo_root)
       delete_buffer(bufnr)
     end)
-
-    it('repo_root is nil when not available', function()
-      local bufnr = create_buffer({
-        'M lua/test.lua',
-        '@@ -1,3 +1,4 @@',
-        ' local M = {}',
-      })
-      local hunks = parser.parse_buffer(bufnr)
-
-      assert.are.equal(1, #hunks)
-      assert.is_nil(hunks[1].repo_root)
-      delete_buffer(bufnr)
-    end)
   end)
 end)