Support for OS X versioning is spreading among apps (e.g., TextWrangler has just added this feature as of version 4.5), but it is unclear what the security implications of this are. For example, if I use an app to store important or sensitive information, I will make sure that the file is on a password protected, encrypted volume; but I worry that OS X versioning might circumvent this by storing versions in an un-secure form and location.
Where does OS X versioning store versions? Is this location secure and encrypted?