As far as I know, they do indeed keep the stuff on their servers now, but only the recent ones. If you pick a chat and try to go back in history, it will start loading the older messages eventually, which presumably it loads from you phone if it’s available. A good experiment would be putting your phone offline and trying to see old messages, to see what happens. If it does work like I think, it won’t be able to show the older messages and will probably show an error message
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