It's a common narrative style trick, isn't it? The historical present? The author can make the tense shift whenever he feels it will be most effective.
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English 1b3Is this a rare exception created by the use of 'just' before 'when'?I don't see it as a rare exception of any kind. It's a fairly standard formula. The past continuous is used to set up a background situation against which a salient event occurs.