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Broken in 1.2.0.201111140414, was OK in 1.2.0.201111110427 Quick Diff always thinks the whole file is new (all lines added).
Sorry about this, this was broken by me in http://egit.eclipse.org/r/#change,4569 Proposed fix pushed to: http://egit.eclipse.org/r/#change,4610 Thanks for reporting it so quickly.
merged as cfd823a69da3823a938167a9ac62297500a21071
Verified in 1.2.0.201111161624.