For example, look at this edit history:
https://meta.stackexchange.com/posts/359735/revisions
It looks like every single revision replaced all the text in the post, even when the revision comment says something like "deleted 1 character in body".
(I was unable to repro here so there is probably something more going on here.)
Examining revision 11 and revision 10 in my browser, they look fine; but fetching them with curl
and doing a diff
reveals that they are indeed both formatted as one loooooong line with the newlines represented as 

(CR+LF). Why were the line breaks in that post saved as HTML entities in the rendered HTML, instead of line breaks? In the Markdown, they were typed as normal line breaks.