diff --git a/bun.lock b/bun.lock
index d72e1a4ec..1a64f9927 100644
--- a/bun.lock
+++ b/bun.lock
@@ -13,7 +13,6 @@
         "crc-32": "^1.2.2",
         "diff": "^8.0.2",
         "disposablestack": "^1.1.7",
-        "electron": "^38.2.1",
         "electron-updater": "^6.6.2",
         "express": "^5.1.0",
         "jsonc-parser": "^3.3.1",
@@ -61,6 +60,7 @@
         "cmdk": "^1.0.0",
         "concurrently": "^8.2.0",
         "dotenv": "^17.2.3",
+        "electron": "^38.2.1",
         "electron-builder": "^24.6.0",
         "electron-devtools-installer": "^4.0.0",
         "electron-mock-ipc": "^0.3.12",
diff --git a/src/utils/highlighting/highlightDiffChunk.test.ts b/src/utils/highlighting/highlightDiffChunk.test.ts
index 3245a55ae..43b28ff7e 100644
--- a/src/utils/highlighting/highlightDiffChunk.test.ts
+++ b/src/utils/highlighting/highlightDiffChunk.test.ts
@@ -75,6 +75,67 @@ describe("highlightDiffChunk", () => {
       expect(result.type).toBe("remove");
       expect(result.lines[0].originalIndex).toBe(5);
     });
+
+    it("should preserve leading whitespace in plain text", async () => {
+      const indentedChunk: DiffChunk = {
+        type: "add",
+        lines: ["    const x = 1;", "        const y = 2;", "  const z = 3;"],
+        startIndex: 0,
+        lineNumbers: [1, 2, 3],
+      };
+
+      const result = await highlightDiffChunk(indentedChunk, "text");
+
+      expect(result.lines).toHaveLength(3);
+      // Leading spaces should be preserved
+      expect(result.lines[0].html).toMatch(/^(\s| ){4}/); // 4 leading spaces
+      expect(result.lines[1].html).toMatch(/^(\s| ){8}/); // 8 leading spaces
+      expect(result.lines[2].html).toMatch(/^(\s| ){2}/); // 2 leading spaces
+    });
+
+    it("should preserve internal whitespace in plain text", async () => {
+      const spacedChunk: DiffChunk = {
+        type: "add",
+        lines: ["const x  =  1;", "if (x    &&    y)"],
+        startIndex: 0,
+        lineNumbers: [1, 2],
+      };
+
+      const result = await highlightDiffChunk(spacedChunk, "text");
+
+      expect(result.lines).toHaveLength(2);
+      // Multiple internal spaces should be preserved
+      expect(result.lines[0].html).toContain("x");
+      expect(result.lines[0].html).toContain("1");
+      // Should have multiple spaces between x and = (2 spaces)
+      expect(result.lines[0].html).toMatch(/x(\s| ){2}=/);
+    });
+
+    it("should detect and fallback when HTML extraction returns empty strings", async () => {
+      // This is a regression test for the whitespace bug where extractLinesFromHtml
+      // could return empty strings without triggering fallback
+      // We can't easily mock Shiki to produce malformed HTML, but we can test
+      // that indented code preserves its whitespace
+      const chunk: DiffChunk = {
+        type: "add",
+        lines: ["    const x = 1;", "        const y = 2;", "  const z = 3;"],
+        startIndex: 0,
+        lineNumbers: [1, 2, 3],
+      };
+
+      const result = await highlightDiffChunk(chunk, "typescript");
+
+      // Verify whitespace is preserved
+      expect(result.lines).toHaveLength(3);
+      expect(result.lines[0].html.length).toBeGreaterThan(0);
+      expect(result.lines[1].html.length).toBeGreaterThan(0);
+      expect(result.lines[2].html.length).toBeGreaterThan(0);
+
+      // All lines should contain "const"
+      expect(result.lines[0].html).toContain("const");
+      expect(result.lines[1].html).toContain("const");
+      expect(result.lines[2].html).toContain("const");
+    });
   });
 
   describe("with real Shiki syntax highlighting", () => {
diff --git a/src/utils/highlighting/highlightDiffChunk.ts b/src/utils/highlighting/highlightDiffChunk.ts
index cf1635331..ca41d361d 100644
--- a/src/utils/highlighting/highlightDiffChunk.ts
+++ b/src/utils/highlighting/highlightDiffChunk.ts
@@ -95,6 +95,15 @@ export async function highlightDiffChunk(
       return createFallbackChunk(chunk);
     }
 
+    // Check if any non-empty line became empty after extraction (indicates malformed HTML)
+    // This prevents rendering empty spans when original line had content (especially whitespace)
+    const hasEmptyExtraction = lines.some(
+      (extractedHtml, i) => extractedHtml.length === 0 && chunk.lines[i].length > 0
+    );
+    if (hasEmptyExtraction) {
+      return createFallbackChunk(chunk);
+    }
+
     return {
       type: chunk.type,
       lines: lines.map((html, i) => ({
diff --git a/src/utils/highlighting/shikiHighlighter.ts b/src/utils/highlighting/shikiHighlighter.ts
index ff8e7466e..b98a54e60 100644
--- a/src/utils/highlighting/shikiHighlighter.ts
+++ b/src/utils/highlighting/shikiHighlighter.ts
@@ -5,7 +5,7 @@ export const SHIKI_THEME = "min-dark";
 
 // Maximum diff size to highlight (in bytes)
 // Diffs larger than this will fall back to plain text for performance
-export const MAX_DIFF_SIZE_BYTES = 4096; // 4kb
+export const MAX_DIFF_SIZE_BYTES = 32768; // 32kb
 
 // Singleton promise (cached to prevent race conditions)
 // Multiple concurrent calls will await the same Promise