diff --git a/native/redux/redux-setup.js b/native/redux/redux-setup.js
index f86933d69..36caff295 100644
--- a/native/redux/redux-setup.js
+++ b/native/redux/redux-setup.js
@@ -1,387 +1,419 @@
 // @flow
 
 import { AppState as NativeAppState, Alert } from 'react-native';
 import { createStore, applyMiddleware, type Store, compose } from 'redux';
 import { persistStore, persistReducer } from 'redux-persist';
 import thunk from 'redux-thunk';
 
 import { setClientDBStoreActionType } from 'lib/actions/client-db-store-actions.js';
 import { siweAuthActionTypes } from 'lib/actions/siwe-actions.js';
 import {
   logOutActionTypes,
   deleteKeyserverAccountActionTypes,
   logInActionTypes,
 } from 'lib/actions/user-actions.js';
 import type { ThreadStoreOperation } from 'lib/ops/thread-store-ops.js';
 import { threadStoreOpsHandlers } from 'lib/ops/thread-store-ops.js';
 import baseReducer from 'lib/reducers/master-reducer.js';
 import {
   invalidSessionDowngrade,
   invalidSessionRecovery,
 } from 'lib/shared/session-utils.js';
 import { isStaff } from 'lib/shared/staff-utils.js';
 import type { Dispatch, BaseAction } from 'lib/types/redux-types.js';
 import { rehydrateActionType } from 'lib/types/redux-types.js';
 import type { SetSessionPayload } from 'lib/types/session-types.js';
 import { reduxLoggerMiddleware } from 'lib/utils/action-logger.js';
 import { setNewSessionActionType } from 'lib/utils/action-utils.js';
 import { ashoatKeyserverID } from 'lib/utils/validation-utils.js';
 
 import {
   updateDimensionsActiveType,
   updateConnectivityActiveType,
   updateDeviceCameraInfoActionType,
   updateDeviceOrientationActionType,
   backgroundActionTypes,
   setReduxStateActionType,
   setStoreLoadedActionType,
   type Action,
   setLocalSettingsActionType,
 } from './action-types.js';
 import { defaultState } from './default-state.js';
 import { remoteReduxDevServerConfig } from './dev-tools.js';
 import { persistConfig, setPersistor } from './persist.js';
 import { onStateDifference } from './redux-debug-utils.js';
 import { processDBStoreOperations } from './redux-utils.js';
 import type { AppState } from './state-types.js';
 import { getGlobalNavContext } from '../navigation/icky-global.js';
 import { activeMessageListSelector } from '../navigation/nav-selectors.js';
 import reactotron from '../reactotron.js';
 import { AppOutOfDateAlertDetails } from '../utils/alert-messages.js';
 import { isStaffRelease } from '../utils/staff-utils.js';
 import { getDevServerHostname } from '../utils/url-utils.js';
 
 function reducer(state: AppState = defaultState, action: Action) {
   if (action.type === setReduxStateActionType) {
     return action.payload.state;
   }
 
   // We want to alert staff/developers if there's a difference between the keys
   // we expect to see REHYDRATED and the keys that are actually REHYDRATED.
   // Context: https://linear.app/comm/issue/ENG-2127/
   if (
     action.type === rehydrateActionType &&
     (__DEV__ ||
       isStaffRelease ||
       (state.currentUserInfo &&
         state.currentUserInfo.id &&
         isStaff(state.currentUserInfo.id)))
   ) {
     // 1. Construct set of keys expected to be REHYDRATED
     const defaultKeys: $ReadOnlyArray<string> = Object.keys(defaultState);
     const expectedKeys = defaultKeys.filter(
       each => !persistConfig.blacklist.includes(each),
     );
     const expectedKeysSet = new Set(expectedKeys);
 
     // 2. Construct set of keys actually REHYDRATED
     const rehydratedKeys: $ReadOnlyArray<string> = Object.keys(
       action.payload ?? {},
     );
     const rehydratedKeysSet = new Set(rehydratedKeys);
 
     // 3. Determine the difference between the two sets
     const expectedKeysNotRehydrated = expectedKeys.filter(
       each => !rehydratedKeysSet.has(each),
     );
     const rehydratedKeysNotExpected = rehydratedKeys.filter(
       each => !expectedKeysSet.has(each),
     );
 
     // 4. Display alerts with the differences between the two sets
     if (expectedKeysNotRehydrated.length > 0) {
       Alert.alert(
         `EXPECTED KEYS NOT REHYDRATED: ${JSON.stringify(
           expectedKeysNotRehydrated,
         )}`,
       );
     }
     if (rehydratedKeysNotExpected.length > 0) {
       Alert.alert(
         `REHYDRATED KEYS NOT EXPECTED: ${JSON.stringify(
           rehydratedKeysNotExpected,
         )}`,
       );
     }
   }
 
   if (
     (action.type === setNewSessionActionType &&
       invalidSessionDowngrade(
         state,
         action.payload.sessionChange.currentUserInfo,
         action.payload.preRequestUserState,
         action.payload.keyserverID,
       )) ||
     (action.type === logOutActionTypes.success &&
       invalidSessionDowngrade(
         state,
         action.payload.currentUserInfo,
         action.payload.preRequestUserState,
         ashoatKeyserverID,
       )) ||
     (action.type === deleteKeyserverAccountActionTypes.success &&
       invalidSessionDowngrade(
         state,
         action.payload.currentUserInfo,
         action.payload.preRequestUserState,
         ashoatKeyserverID,
       ))
   ) {
     return state;
   }
   if (
     (action.type === setNewSessionActionType &&
       action.payload.sessionChange.currentUserInfo &&
       invalidSessionRecovery(
         state,
         action.payload.sessionChange.currentUserInfo,
         action.payload.logInActionSource,
       )) ||
     ((action.type === logInActionTypes.success ||
       action.type === siweAuthActionTypes.success) &&
       invalidSessionRecovery(
         state,
         action.payload.currentUserInfo,
         action.payload.logInActionSource,
       ))
   ) {
     return state;
   }
 
   if (action.type === updateDimensionsActiveType) {
     return {
       ...state,
       dimensions: {
         ...state.dimensions,
         ...action.payload,
       },
     };
   } else if (action.type === updateConnectivityActiveType) {
     return {
       ...state,
       connectivity: action.payload,
     };
   } else if (action.type === updateDeviceCameraInfoActionType) {
     return {
       ...state,
       deviceCameraInfo: {
         ...state.deviceCameraInfo,
         ...action.payload,
       },
     };
   } else if (action.type === updateDeviceOrientationActionType) {
     return {
       ...state,
       deviceOrientation: action.payload,
     };
   } else if (action.type === setLocalSettingsActionType) {
     return {
       ...state,
       localSettings: { ...state.localSettings, ...action.payload },
     };
   } else if (
     action.type === logOutActionTypes.started ||
     action.type === logOutActionTypes.success ||
     action.type === deleteKeyserverAccountActionTypes.success
   ) {
     state = {
       ...state,
       localSettings: {
         isBackupEnabled: false,
       },
     };
   }
 
   if (action.type === setNewSessionActionType) {
     sessionInvalidationAlert(action.payload);
   }
   if (action.type === setStoreLoadedActionType) {
     return {
       ...state,
       storeLoaded: true,
     };
   }
   if (action.type === setClientDBStoreActionType) {
     state = {
       ...state,
       storeLoaded: true,
     };
     const currentLoggedInUserID = state.currentUserInfo?.anonymous
       ? undefined
       : state.currentUserInfo?.id;
     const actionCurrentLoggedInUserID = action.payload.currentUserID;
     if (
       !currentLoggedInUserID ||
       !actionCurrentLoggedInUserID ||
       actionCurrentLoggedInUserID !== currentLoggedInUserID
     ) {
       // If user is logged out now, was logged out at the time action was
       // dispatched or their ID changed between action dispatch and a
       // call to reducer we ignore the SQLite data since it is not valid
       return state;
     }
   }
 
   const baseReducerResult = baseReducer(
     state,
     (action: BaseAction),
     onStateDifference,
   );
   state = baseReducerResult.state;
 
   const { storeOperations } = baseReducerResult;
   const {
     draftStoreOperations,
     threadStoreOperations,
     messageStoreOperations,
     reportStoreOperations,
     userStoreOperations,
   } = storeOperations;
 
   const fixUnreadActiveThreadResult = fixUnreadActiveThread(state, action);
   state = fixUnreadActiveThreadResult.state;
 
   const threadStoreOperationsWithUnreadFix = [
     ...threadStoreOperations,
     ...fixUnreadActiveThreadResult.threadStoreOperations,
   ];
 
   void processDBStoreOperations({
     draftStoreOperations,
     messageStoreOperations,
     threadStoreOperations: threadStoreOperationsWithUnreadFix,
     reportStoreOperations,
     userStoreOperations,
   });
 
   return state;
 }
 
 function sessionInvalidationAlert(payload: SetSessionPayload) {
   if (
     !payload.sessionChange.cookieInvalidated ||
     !payload.preRequestUserState ||
     !payload.preRequestUserState.currentUserInfo ||
     payload.preRequestUserState.currentUserInfo.anonymous
   ) {
     return;
   }
   if (payload.error === 'client_version_unsupported') {
     Alert.alert(
       AppOutOfDateAlertDetails.title,
       AppOutOfDateAlertDetails.message,
       [{ text: 'OK' }],
       {
         cancelable: true,
       },
     );
   } else {
     Alert.alert(
       'Session invalidated',
       'We’re sorry, but your session was invalidated by the server. ' +
         'Please log in again.',
       [{ text: 'OK' }],
       { cancelable: true },
     );
   }
 }
 
 // Makes sure a currently focused thread is never unread. Note that we consider
 // a backgrounded NativeAppState to actually be active if it last changed to
 // inactive more than 10 seconds ago. This is because there is a delay when
 // NativeAppState is updating in response to a foreground, and actions don't get
 // processed more than 10 seconds after a backgrounding anyways. However we
 // don't consider this for action types that can be expected to happen while the
 // app is backgrounded.
 type FixUnreadActiveThreadResult = {
   +state: AppState,
   +threadStoreOperations: $ReadOnlyArray<ThreadStoreOperation>,
 };
 
 function fixUnreadActiveThread(
   state: AppState,
   action: *,
 ): FixUnreadActiveThreadResult {
   const navContext = getGlobalNavContext();
   const activeThread = activeMessageListSelector(navContext);
   if (
     !activeThread ||
     !state.threadStore.threadInfos[activeThread]?.currentUser.unread ||
     (NativeAppState.currentState !== 'active' &&
       (appLastBecameInactive + 10000 >= Date.now() ||
         backgroundActionTypes.has(action.type)))
   ) {
     return { state, threadStoreOperations: [] };
   }
 
-  const updatedActiveThreadInfo = {
-    ...state.threadStore.threadInfos[activeThread],
-    currentUser: {
-      ...state.threadStore.threadInfos[activeThread].currentUser,
-      unread: false,
-    },
-  };
-
-  const threadStoreOperations = [
-    {
-      type: 'replace',
-      payload: {
-        id: activeThread,
-        threadInfo: updatedActiveThreadInfo,
+  const activeThreadInfo = state.threadStore.threadInfos[activeThread];
+  // TODO (atul): Try to get rid of this ridiculous branching.
+  if (activeThreadInfo.minimallyEncoded) {
+    const updatedActiveThreadInfo = {
+      ...activeThreadInfo,
+      currentUser: {
+        ...activeThreadInfo.currentUser,
+        unread: false,
       },
-    },
-  ];
+    };
 
-  const updatedThreadStore = threadStoreOpsHandlers.processStoreOperations(
-    state.threadStore,
-    threadStoreOperations,
-  );
+    const threadStoreOperations = [
+      {
+        type: 'replace',
+        payload: {
+          id: activeThread,
+          threadInfo: updatedActiveThreadInfo,
+        },
+      },
+    ];
 
-  return {
-    state: { ...state, threadStore: updatedThreadStore },
-    threadStoreOperations,
-  };
+    const updatedThreadStore = threadStoreOpsHandlers.processStoreOperations(
+      state.threadStore,
+      threadStoreOperations,
+    );
+
+    return {
+      state: { ...state, threadStore: updatedThreadStore },
+      threadStoreOperations,
+    };
+  } else {
+    const updatedActiveThreadInfo = {
+      ...activeThreadInfo,
+      currentUser: {
+        ...activeThreadInfo.currentUser,
+        unread: false,
+      },
+    };
+
+    const threadStoreOperations = [
+      {
+        type: 'replace',
+        payload: {
+          id: activeThread,
+          threadInfo: updatedActiveThreadInfo,
+        },
+      },
+    ];
+
+    const updatedThreadStore = threadStoreOpsHandlers.processStoreOperations(
+      state.threadStore,
+      threadStoreOperations,
+    );
+
+    return {
+      state: { ...state, threadStore: updatedThreadStore },
+      threadStoreOperations,
+    };
+  }
 }
 
 let appLastBecameInactive = 0;
 
 function appBecameInactive() {
   appLastBecameInactive = Date.now();
 }
 
 const middleware = applyMiddleware(thunk, reduxLoggerMiddleware);
 
 let composeFunc = compose;
 if (__DEV__ && global.HermesInternal) {
   const { composeWithDevTools } = require('remote-redux-devtools/src/index.js');
   composeFunc = composeWithDevTools({
     name: 'Redux',
     hostname: getDevServerHostname(),
     ...remoteReduxDevServerConfig,
   });
 } else if (global.__REDUX_DEVTOOLS_EXTENSION_COMPOSE__) {
   composeFunc = global.__REDUX_DEVTOOLS_EXTENSION_COMPOSE__({
     name: 'Redux',
   });
 }
 
 let enhancers;
 if (reactotron) {
   enhancers = composeFunc(middleware, reactotron.createEnhancer());
 } else {
   enhancers = composeFunc(middleware);
 }
 
 const store: Store<AppState, *> = createStore(
   persistReducer(persistConfig, reducer),
   defaultState,
   enhancers,
 );
 const persistor = persistStore(store);
 setPersistor(persistor);
 
 const unsafeDispatch: any = store.dispatch;
 const dispatch: Dispatch = unsafeDispatch;
 
 export { store, dispatch, appBecameInactive };