I suspect the latter, helped by an ability to recover by inserting missing characters such as braces and quotes. (Xcode actually offers to fix trivial errors such as those, I'm sure VS does the same.)

It's an interesting problem. I suppose that as it knows the point of breakage, it can annotate the AST to indicate breakage, but preserve the subsequent node; breakage itself becomes a kind of AST node. It's possible that in such a situation, any subsequent AST nodes probably have to point to their pre-breakage nodes as parents in order to stay sane. Thus the AST tree becomes a kind of Git-like revision history that stays fragmented until the next time the AST fully parses. It could easily be something even simpler, however.

In my case, the later, I use a very tolerated css and html tokenizer/parser to provide basic html code-completion in LIVEditor - the real-time css and html tweaker/editor (http://liveditor.com)