On the new subspace of cusp forms, a common eigenspace for the Hecke operators away from the level has dimension one. Distinct newforms, even at different primitive levels, have different systems of these eigenvalues. Consequently the commuting bad-prime operators also act by scalars on these lines. This is the multiplicity-one part of Atkin-Lehner-Li theory, not a consequence of normal operator diagonalization alone. See Stein's statement of the theorem.
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