After phone's startup, both the existing and new SMS messages aren't visible - until you connect to the Internet (i.e. WiFi network)
Steps to reproduce: Ensure that your phone doesn't get the Internet connection after booting: no WiFi auto-enabling and no data transmission over the cellular network, but the cellular modem is still enabled for the phone calls and SMS messages. Then reboot your phone and open Chatty.
Expected results: The existing SMS messages are visible, and the new SMS are being received normally. Just no Internet is available, but that's okay.
Current results: You won't see any existing SMS messages (the whole Chatty window is empty!) and Chatty won't display any new SMS - that's until you connect to the Internet (i.e. WiFi) at least once. But after you connect, all the existing messages instantly appear at Chatty and it starts showing the new messages too.
I didn't set up any XMPP account or any other online accounts: just trying to use the SMS functionality, which shouldn't depend on the previously done Internet connection. It almost feels like the SMS messages are stored on some unknown external server (which, if really happens, is a huge security issue) - and are synced with your phone when you get the Internet connection.
All that - is happening despite a mysterious "Message Archive Management (Sync conversations with chat server)" setting is disabled. Perhaps this problem is related to that "MAM" and someone needs to investigate the related code to fix it.