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For 2:
The compiler compiles the IR first, then resolves substitutions.
The vars stack is built-up incrementally, so a var is only visible if it's been declared before you access it.
The initial IR compilation coalesces the fields, so that x1, though accessing a var after the var's declaration, is seen as being defined before the var's declaration.
I don't actually think in a declarative language you should be able to change vars mid-way. Changed so that all vars within the same scope are coalesced first.
closes #1641