There is a good explanation of the edit process here: http://meta.stackexchange.com/questions/76251/how-do-suggested-edits-work

As Federico pointed out, there have been changes to the process since then: http://meta.stackexchange.com/questions/149722/approve-as-too-minor/238039#238039

It appears that in this case, when the response was "Reject and Edit", that was recorded as a rejection by Community, and then the edit by the user that made the review. The "Reject" part means that the original edit does not appear in the revision history.

If a reviewer is going to keep most or all of the original changes, they should really choose "Improve and Edit". The "Reject" implies that the reviewer is going to make significant changes to the intent of the edit.