Red neutral?

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I decided to get rid of an illegal junction box. It has 2 circuits in it: Each feeds an old electric baseboard heater in 2 separate rooms. The box is fed from a 4-wire that comes straight from the panel and I can't find anything else attached to this circuit: Just the 2 baseboard heaters wired with 14/2. The old junction box has all 3 blacks wired together and all 3 grounds wired together but the 2 neutrals from the heaters are tied to the red wire from the 4-wire that feeds the box. I thought was odd?

I'd like to get rid of the heaters and put in wall outlets instead, but after moving the junction box to a legal location and running new wire to the new wall outlets I find that whenever I plug in the 3light circuit tester all 3 lights come on simultaneously. I can't even find a code for that?

Any help would be welcome.
 
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Could it be that by using the red with the neutrals it doubles the voltage? Maybe the heaters needed 240 instead of 120?
 
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Lots of people wire up stuff without any sense. Sometimes they will use one of the hearts and then tape around the cable with a colored tape that indicates ground neutral or a hot. Either way make sure that it’s a neutral or a hot or a ground
 

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