Hello isurfsafe,
From your screenshot I can see that you have "Keep" mode selected. which means that the begin marker would set a beginnig of the "Keep" interval, and end marker sets the end of the "Keep" interval. The cut-intervals automatically collapsed when you work in a "Cut" mode.
You can collapse the cut interval manually in your mode - just double-click the cut interval and you'll see how collapsing works. To expand the interval back you should double-click the collapsed marker.
The interval which is bright is considered a "keep" interval, the one that is dark is the "cut" interval.