diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 3c4ad2f9a1..153de66726 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -13193,28 +13193,6 @@ async fn test_diff_base_change_with_expanded_diff_hunks(
 
     cx.set_diff_base("new diff base!");
     executor.run_until_parked();
-    cx.assert_state_with_diff(
-        r#"
-          use some::mod2;
-
-          const A: u32 = 42;
-          const C: u32 = 42;
-
-          fn main(ˇ) {
-              //println!("hello");
-
-              println!("world");
-              //
-              //
-          }
-        "#
-        .unindent(),
-    );
-
-    cx.update_editor(|editor, window, cx| {
-        editor.expand_all_diff_hunks(&ExpandAllHunkDiffs, window, cx);
-    });
-    executor.run_until_parked();
     cx.assert_state_with_diff(
         r#"
         - new diff base!
diff --git a/crates/editor/src/element.rs b/crates/editor/src/element.rs
index 87602c72ad..612a866945 100644
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -4829,7 +4829,15 @@ impl EditorElement {
     ) {
         for (_, hunk_hitbox) in &layout.display_hunks {
             if let Some(hunk_hitbox) = hunk_hitbox {
-                window.set_cursor_style(CursorStyle::PointingHand, hunk_hitbox);
+                if !self
+                    .editor
+                    .read(cx)
+                    .buffer()
+                    .read(cx)
+                    .all_diff_hunks_expanded()
+                {
+                    window.set_cursor_style(CursorStyle::PointingHand, hunk_hitbox);
+                }
             }
         }
 
@@ -5717,7 +5725,7 @@ impl EditorElement {
         window.on_mouse_event({
             let position_map = layout.position_map.clone();
             let editor = self.editor.clone();
-            let multi_buffer_range =
+            let diff_hunk_range =
                 layout
                     .display_hunks
                     .iter()
@@ -5753,7 +5761,7 @@ impl EditorElement {
                             Self::mouse_left_down(
                                 editor,
                                 event,
-                                multi_buffer_range.clone(),
+                                diff_hunk_range.clone(),
                                 &position_map,
                                 line_numbers.as_ref(),
                                 window,
diff --git a/crates/multi_buffer/src/multi_buffer.rs b/crates/multi_buffer/src/multi_buffer.rs
index 82242ae042..422db29cbd 100644
--- a/crates/multi_buffer/src/multi_buffer.rs
+++ b/crates/multi_buffer/src/multi_buffer.rs
@@ -281,13 +281,28 @@ enum DiffTransform {
     },
 }
 
-#[derive(Clone, Copy, Debug, PartialEq, Eq, Hash)]
+#[derive(Clone, Copy, Debug)]
 struct DiffTransformHunkInfo {
     excerpt_id: ExcerptId,
     hunk_start_anchor: text::Anchor,
     hunk_secondary_status: DiffHunkSecondaryStatus,
 }
 
+impl Eq for DiffTransformHunkInfo {}
+
+impl PartialEq for DiffTransformHunkInfo {
+    fn eq(&self, other: &DiffTransformHunkInfo) -> bool {
+        self.excerpt_id == other.excerpt_id && self.hunk_start_anchor == other.hunk_start_anchor
+    }
+}
+
+impl std::hash::Hash for DiffTransformHunkInfo {
+    fn hash<H: std::hash::Hasher>(&self, state: &mut H) {
+        self.excerpt_id.hash(state);
+        self.hunk_start_anchor.hash(state);
+    }
+}
+
 #[derive(Clone)]
 pub struct ExcerptInfo {
     pub id: ExcerptId,
@@ -2361,7 +2376,7 @@ impl MultiBuffer {
         self.expand_or_collapse_diff_hunks(vec![Anchor::min()..Anchor::max()], true, cx);
     }
 
-    pub fn all_diff_hunks_expanded(&mut self) -> bool {
+    pub fn all_diff_hunks_expanded(&self) -> bool {
         self.all_diff_hunks_expanded
     }
 
@@ -2401,6 +2416,9 @@ impl MultiBuffer {
         expand: bool,
         cx: &mut Context<Self>,
     ) {
+        if self.all_diff_hunks_expanded && !expand {
+            return;
+        }
         self.sync(cx);
         let mut snapshot = self.snapshot.borrow_mut();
         let mut excerpt_edits = Vec::new();
@@ -2986,7 +3004,7 @@ impl MultiBuffer {
                     let was_previously_expanded = old_expanded_hunks.contains(&hunk_info);
                     let should_expand_hunk = match &change_kind {
                         DiffChangeKind::DiffUpdated { base_changed: true } => {
-                            self.all_diff_hunks_expanded
+                            self.all_diff_hunks_expanded || was_previously_expanded
                         }
                         DiffChangeKind::ExpandOrCollapseHunks { expand } => {
                             let intersects = hunk_buffer_range.is_empty()