With the 1.8.1 version (which I don't know if it has been fixed in the 1.8.2 yet) but I've noticed that after doing a merge conflict (using kdiff3) and saving the changes, returning to SourceTree it crashes (which is still noted as doing that in 1.8.2). But the SourceTree displays the file in the Staged panel and a new file with a .orig suffix in the unstaged files panel. I normally then remove the .orig file from unstaged panel. But in doing that, now the file in the staged panel gets marked as "Deleted" with the "D" icon. I've tried unstaging the file and then discarding the changes but that only ends up deleting the file (which has caused me to loose my accepted merge changes). So right now the merge conflicts functionality is totally non functioning.