diff --git a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/moveUpDown/MoverWrapper.java b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/moveUpDown/MoverWrapper.java
index add65b485710..fd4c45aad5dc 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/editorActions/moveUpDown/MoverWrapper.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/editorActions/moveUpDown/MoverWrapper.java
@@ -16,6 +16,7 @@
 
 package com.intellij.codeInsight.editorActions.moveUpDown;
 
+import com.intellij.codeInsight.folding.CodeFoldingManager;
 import com.intellij.openapi.editor.*;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.TextRange;
@@ -44,7 +45,7 @@ class MoverWrapper {
     return myInfo;
   }
 
-  public final void move(Editor editor, final PsiFile file) {
+  public final void move(final Editor editor, final PsiFile file) {
     assert myInfo.toMove2 != null;
     myMover.beforeMove(editor, myInfo, myIsDown);
     final Document document = editor.getDocument();
@@ -91,19 +92,8 @@ class MoverWrapper {
     // Pointer for the fold region from method1 points to 'method2()' now and vice versa (check range markers processing on
     // document change for further information). I.e. information about fold regions statuses holds the data swapped for
     // 'method1' and 'method2'. Hence, we want to apply correct 'collapsed' status.
-    FoldRegion topRegion = null;
-    FoldRegion bottomRegion = null;
-    for (FoldRegion foldRegion : editor.getFoldingModel().getAllFoldRegions()) {
-      if (!foldRegion.isValid() || (!contains(myInfo.range1, foldRegion) && !contains(myInfo.range2, foldRegion))) {
-        continue;
-      }
-      if (contains(myInfo.range1, foldRegion) && !contains(topRegion, foldRegion)) {
-        topRegion = foldRegion;
-      }
-      else if (contains(myInfo.range2, foldRegion) && !contains(bottomRegion, foldRegion)) {
-        bottomRegion = foldRegion;
-      }
-    }
+    final FoldRegion topRegion = findTopLevelRegionInRange(editor, myInfo.range1);
+    final FoldRegion bottomRegion = findTopLevelRegionInRange(editor, myInfo.range2);
 
     document.insertString(myInfo.range1.getStartOffset(), textToInsert2);
     document.deleteString(myInfo.range1.getStartOffset()+textToInsert2.length(), myInfo.range1.getEndOffset());
@@ -120,14 +110,19 @@ class MoverWrapper {
 
     // Swap fold regions status if necessary.
     if (topRegion != null && bottomRegion != null) {
-      final FoldRegion finalTopRegion = topRegion;
-      final FoldRegion finalBottomRegion = bottomRegion;
+      CodeFoldingManager.getInstance(project).updateFoldRegions(editor);
       editor.getFoldingModel().runBatchFoldingOperation(new Runnable() {
         @Override
         public void run() {
-          boolean topExpanded = finalTopRegion.isExpanded();
-          finalTopRegion.setExpanded(finalBottomRegion.isExpanded());
-          finalBottomRegion.setExpanded(topExpanded);
+          FoldRegion newTopRegion = findTopLevelRegionInRange(editor, myInfo.range1);
+          if (newTopRegion != null) {
+            newTopRegion.setExpanded(bottomRegion.isExpanded());
+          }
+
+          FoldRegion newBottomRegion = findTopLevelRegionInRange(editor, myInfo.range2);
+          if (newBottomRegion != null) {
+            newBottomRegion.setExpanded(topRegion.isExpanded());
+          }
         }
       });
     }
@@ -148,6 +143,16 @@ class MoverWrapper {
     editor.getScrollingModel().scrollToCaret(ScrollType.RELATIVE);
   }
 
+  private static FoldRegion findTopLevelRegionInRange(Editor editor, RangeMarker range) {
+    FoldRegion result = null;
+    for (FoldRegion foldRegion : editor.getFoldingModel().getAllFoldRegions()) {
+      if (foldRegion.isValid() && contains(range, foldRegion) && !contains(result, foldRegion)) {
+        result = foldRegion;
+      }
+    }
+    return result;
+  }
+
   /**
    * Allows to check if text range defined by the given range marker completely contains text range of the given fold region.
    *
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldRegionsTree.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldRegionsTree.java
index 0acfbbcc33f8..e9987064169f 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldRegionsTree.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldRegionsTree.java
@@ -80,12 +80,15 @@ abstract class FoldRegionsTree {
   void rebuild() {
     ArrayList<FoldRegion> topLevels = new ArrayList<FoldRegion>(myRegions.size() / 2);
     ArrayList<FoldRegion> visible = new ArrayList<FoldRegion>(myRegions.size());
+    ArrayList<FoldRegion> allValid = new ArrayList<FoldRegion>(myRegions.size());
     FoldRegion[] regions = toFoldArray(myRegions);
     FoldRegion currentCollapsed = null;
     for (FoldRegion region : regions) {
       if (!region.isValid()) {
         continue;
       }
+
+      allValid.add(region);
       
       if (currentCollapsed == null || !contains(currentCollapsed, region)) {
         visible.add(region);
@@ -99,6 +102,10 @@ abstract class FoldRegionsTree {
       }
     }
 
+    if (allValid.size() < myRegions.size()) {
+      myRegions = allValid;
+    }
+
     myCachedTopLevelRegions = toFoldArray(topLevels);
     myCachedVisible = toFoldArray(visible);
 
diff --git a/platform/platform-tests/testSrc/com/intellij/openapi/editor/FoldingTest.java b/platform/platform-tests/testSrc/com/intellij/openapi/editor/FoldingTest.java
index 6d370d85ce31..d9fb2c5cb29c 100644
--- a/platform/platform-tests/testSrc/com/intellij/openapi/editor/FoldingTest.java
+++ b/platform/platform-tests/testSrc/com/intellij/openapi/editor/FoldingTest.java
@@ -1,15 +1,22 @@
 package com.intellij.openapi.editor;
 
+import com.intellij.openapi.command.WriteCommandAction;
 import com.intellij.openapi.editor.ex.FoldingModelEx;
 import com.intellij.openapi.editor.impl.DocumentImpl;
 import com.intellij.openapi.util.Ref;
 import com.intellij.testFramework.LightPlatformTestCase;
+import com.intellij.testFramework.PlatformTestCase;
 import org.jetbrains.annotations.NonNls;
 
 /**
  * @author max
  */
 public class FoldingTest extends LightPlatformTestCase {
+
+  static {
+    PlatformTestCase.autodetectPlatformPrefix();
+  }
+
   public void testStressFoldingFromZeroOffset() throws Exception {
     for (int len = 2; len < 25; len++) {
       stress(len);
@@ -68,6 +75,32 @@ public class FoldingTest extends LightPlatformTestCase {
     }
   }
 
+  public void testCleanupInvalidRegions() {
+    final DocumentImpl doc = new DocumentImpl("foo1\nfoo2\nfoo3\nfoo4");
+    Editor editor = EditorFactory.getInstance().createEditor(doc);
+    final FoldingModel model = editor.getFoldingModel();
+    try {
+      model.runBatchFoldingOperation(new Runnable() {
+        @Override
+        public void run() {
+          model.addFoldRegion(0, 4, "/*...*/");
+          model.addFoldRegion(5, 9, "/*...*/");
+        }
+      });
+      assertSize(2, model.getAllFoldRegions());
+      WriteCommandAction.runWriteCommandAction(getProject(), new Runnable() {
+        @Override
+        public void run() {
+          doc.deleteString(0, 5);
+        }
+      });
+      assertSize(1, model.getAllFoldRegions());
+    }
+    finally {
+      EditorFactory.getInstance().releaseEditor(editor);
+    }
+  }
+
   public void testIntersects () throws Exception {
     @NonNls DocumentImpl doc = new DocumentImpl("I don't know what you mean by `glory,'\" Alice said" +
      "Humpty Dumpty smiled contemptuously. \"Of course you don't -- till I tell you. I meant `there's a nice knock-down argument for you!'" +