makubexho, The classical rule is that in reported speech you shift the tense back when the reporting verb is in the past tense. -Judy says to Peter "I am seeing someone else...". Peter felt disappointed and betrayed. In classical reported speech this sentence becomes--- Peter felt betrayed the moment his girlfriend TOLD him that she WAS seeing somebody else. -Judy says to Peter "I have been seeing someone else...". Peter felt disappointed and betrayed. In classical reported speech this sentence becomes--- Peter felt betrayed the moment his girlfriend TOLD him that she HAD been seeing somebody else. This rule is followed when the reporter wants to be neutral, i.e. not convey any opinion about truth, when what was said is no longer true, or when the reporter does not believe the speaker --------------- One of the major exceptions to this rule is that English speakers generally do not change the tense if what is said is still true, or has not happened yet, and they believe the speaker, or the speaker reports something immediately or soon after it was said. -Judy says to Peter "I am seeing someone else...". Peter felt disappointed and betrayed. In natural English speech the sentence then becomes--- Peter felt betrayed the moment his girlfriend told him that she's seeing somebody else. -Judy says to Peter "I have been seeing someone else...". This sentence becomes-- Peter felt betrayed the moment his girlfriend told him that she's been seeing somebody else.

Peter felt betrayed the moment his girlfriend told him that she was seeing somebody else. Peter felt betrayed the moment his girlfriend told him that she'd been seeing somebody else. Both of these are correct. This is not about the past perfect. It is about reported speech. There are two ways to do reported speech. Revise them!