When multiple editors are editing the same version and one editor exits out of ArcMap without first saving their edits, those edits are not saved after selecting ‘Yes’ to the save edits prompt. In this situation, a user is presented with the following message so that they can save again.
"Your edits could not be saved because the target version has been updated since you started editing. These edits have been merged into your edit session. Review the changes and save again."
Because the version has changed since the edit session has started, the user must reconcile with its own version before any edits are able to be saved. Currently, this reconcile is not occurring if the user closes ArcMap in the middle of an edit session. As such, edits cannot be saved.
This bug is being fixed for ArcSDE 9.2 Service Pack 4 (SP4).