In general, a string $x$ is a subsequence of $w = w_1\dots w_n$ if there are integers $i_1<\dots< i_k$ such that $x = w_{i_1}\dots w_{i_k}$. The subsequence is proper if $k < n$ and $k > 0$.
With this definition given, a homework problem asks the following: Suppose $L$ and $L_1$ are languages, and define $L \diamond L_1$ to be the set $\{x \in L : \text{no string } x' \in L_1 \text{ is a proper subsequence of } x\}$. If both $L$ and $L_1$ are regular, does it follow that $L \diamond L_1$ is regular? Justify your answer.
I've attempted to construct an NFA that would recognize $L \diamond L_1$, but this went nowhere, as things soon got overly complicated. Any ideas or suggestions?