diff --git a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
index f59a387a9fb4..19f37c372305 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormatProcessor.java
@@ -223,9 +223,7 @@ class FormatProcessor {
       return;
     }
     
-    while (myCurrentState.getStateId() == FormattingStateId.PROCESSING_BLOCKS && !myCurrentState.isDone()) {
-      myCurrentState.iteration();
-    }
+    doIterationsSynchronously(FormattingStateId.PROCESSING_BLOCKS);
   }
 
   private void reset() {
@@ -246,15 +244,27 @@ class FormatProcessor {
     assert !myDisposed;
     myCurrentState.setNext(new ApplyChangesState(model));
     
-    if (!sequentially) {
+    if (sequentially) {
       return;
     }
 
-    while (myCurrentState.getStateId() == FormattingStateId.APPLYING_CHANGES && !myCurrentState.isDone()) {
+    doIterationsSynchronously(FormattingStateId.APPLYING_CHANGES);
+  }
+
+  /**
+   * Perform iterations against the {@link #myCurrentState current state} until it's {@link FormattingStateId type} 
+   * is {@link FormattingStateId#getPreviousStates() less} or equal to the given state.
+   * 
+   * @param state   target state to process
+   */
+  private void doIterationsSynchronously(@NotNull FormattingStateId state) {
+    while ((myCurrentState.getStateId() == state || state.getPreviousStates().contains(myCurrentState.getStateId()))
+           && !myCurrentState.isDone())
+    {
       myCurrentState.iteration();
     }
   }
-
+  
   public void setJavaIndentOptions(final CodeStyleSettings.IndentOptions javaIndentOptions) {
     myJavaIndentOptions = javaIndentOptions;
   }
diff --git a/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java b/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
index 052a2ca8a559..02a7cc6ff350 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormatterImpl.java
@@ -214,6 +214,7 @@ public class FormatterImpl extends FormatterEx
       }
       finally {
         enableFormatting();
+        myProgressIndicator = null;
       }
     }
     else {
diff --git a/platform/lang-impl/src/com/intellij/formatting/FormattingProgressIndicatorImpl.java b/platform/lang-impl/src/com/intellij/formatting/FormattingProgressIndicatorImpl.java
index 6916a1dcedcb..1a57f2c4a1bc 100644
--- a/platform/lang-impl/src/com/intellij/formatting/FormattingProgressIndicatorImpl.java
+++ b/platform/lang-impl/src/com/intellij/formatting/FormattingProgressIndicatorImpl.java
@@ -35,6 +35,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
 import javax.swing.*;
+import java.lang.ref.WeakReference;
 import java.lang.reflect.InvocationTargetException;
 import java.util.Collection;
 import java.util.HashMap;
@@ -81,10 +82,9 @@ public class FormattingProgressIndicatorImpl extends Task.Modal implements Forma
   
   private final Map<EventType, Collection<Runnable>> myCallbacks = new HashMap<EventType, Collection<Runnable>>();
 
-  @Nullable
-  private final VirtualFile myFile;
-  private final Document    myDocument;
-  private final int         myFileTextLength;
+  private final WeakReference<VirtualFile> myFile;
+  private final WeakReference<Document>    myDocument;
+  private final int                        myFileTextLength;
 
   @NotNull
   private          FormattingStateId myLastState                       = FormattingStateId.WRAPPING_BLOCKS;
@@ -98,8 +98,8 @@ public class FormattingProgressIndicatorImpl extends Task.Modal implements Forma
   
   public FormattingProgressIndicatorImpl(@Nullable Project project, @NotNull PsiFile file, @NotNull Document document) {
     super(project, getTitle(file), true);
-    myFile = file.getVirtualFile();
-    myDocument = document;
+    myFile = new WeakReference<VirtualFile>(file.getVirtualFile());
+    myDocument = new WeakReference<Document>(document);
     myFileTextLength = file.getTextLength();
     addCallback(EventType.CANCEL, new MyCancelCallback());
   }
@@ -140,7 +140,10 @@ public class FormattingProgressIndicatorImpl extends Task.Modal implements Forma
     UIUtil.invokeAndWaitIfNeeded(new Runnable() {
       @Override
       public void run() {
-        myDocumentModificationStampBefore = myDocument.getModificationStamp();
+        Document document = myDocument.get();
+        if (document != null) {
+          myDocumentModificationStampBefore = document.getModificationStamp();
+        }
         task.prepare();
       }
     });
@@ -282,16 +285,18 @@ public class FormattingProgressIndicatorImpl extends Task.Modal implements Forma
     @Override
     public void run() {
       myRunning = false;
-      if (myFile == null || myDocumentModificationStampBefore < 0) {
+      VirtualFile file = myFile.get();
+      Document document = myDocument.get();
+      if (file == null || document == null || myDocumentModificationStampBefore < 0) {
         return;
       }
-      FileEditor editor = FileEditorManager.getInstance(myProject).getSelectedEditor(myFile);
+      FileEditor editor = FileEditorManager.getInstance(myProject).getSelectedEditor(file);
       if (editor == null) {
         return;
       }
       
       UndoManager manager = UndoManager.getInstance(myProject);
-      while (manager.isUndoAvailable(editor) && myDocument.getModificationStamp() != myDocumentModificationStampBefore) {
+      while (manager.isUndoAvailable(editor) && document.getModificationStamp() != myDocumentModificationStampBefore) {
         manager.undo(editor);
       }
     }