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I thought the iPhone 4 could only record video at 720p????

Is your phone jailbroken or have you used a particular app?
 
Not that I can tell if it is 1080p on my iPhone, but yeah, how did you record in 1080p? Out of the box it only records in 720p.
 
If it was recorded in 720p then that's the resolution. Upscaling it to 1080p does not make it 1080p. Not even close actually.
 
What is the point of uploading 720P video as 1080P?

You are only destroying the quality of the video. Now it is not even as good as the 720p video that came out of your phone directly.
 
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Ive had a similar situation happen to me. Recorded a video with a jailbroken iPhone 4 but in the stock camera app, uploaded to YouTube on my iPhone 4 from the camera roll, then went back to watch it on my computer and was able to watch it in "1080p". I couldn't tell a difference at all, and I was confused as to why it said 1080p...
 
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