Comment 8 for bug 708829

I'm not sure if it's the same issue as originally reported, but I confirm the behaviour Surendra has reported. It happens on SFTP/SSH connections as well as SMB, and seems to only occur on text files less than 4096 bytes. Yes this is a dangerous bug - I was just lucky to notice before losing important notes.

If you reverse lines 232 & 233 in src/file.c so that it becomes:
  fclose(fp);
  gtk_text_buffer_set_modified(buffer, FALSE);

and recompile it seems to fix the bug - the files save correctly. There must be some issue between GVFS and gtk_text_buffer_set_modified where the buffer is lost.