Messages are encrypted to the receivers public key. Only the receivers private key can decrypt the message. However, everyone can see that you are messaging the receiver (both IDs are visible)

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Does this mean if the sender’s key is compromised, the new key holder would not be able to see the message?

Correct. Private messages become a mess.

Wow. You can’t switch clients and see your dms from other clients. That is a mess.

What about direct messages ?

yes this is for dms. dms are the only regularly used encrypted content rn. metadata is public but content is private.

Also bear in mind that if either parties private key ever gets exposed, all old messages will then be readable.

good point.