I'm about 95% sure that older versions of vBulletin (pre-2.0, I think) used nested quotes. The thing is, they really began to pile up after awhile, to the point where the quotes would be 4 or 5 times the reply after a page or two. It ended up being better to simply quote the last one most of the time. Sure beat the alternative, since users very rarely edited out the excessive quotes later in a thread.
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