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I recently tried to chat with someone when they were not online (status was yellow). A few hours later it was still there and I added to the chat.

A few hours later again I came back and the chat window was gone and the content of it was in sent mail.

Does this mean the other person received it and that is why that happened?

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Google use the Gmail mailbox to store the chat history. In Gmail, Sent Mail, is a system view that shows both chat and email messages/conversations that was sent by the mailbox's account or an alias of it.

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