I just plugged in a USB stick, edited a text file a few times, and found that I could browse through the revision history of the file, even though it's on an external drive. Are these revisions saved on the USB stick? Where exactly?
There are a couple SQLite databases located in a hidden folder on the root of your hard drive that are tasked with tracking the files and the differences between the versions.
The directory is:
The two databases are: