diff --git a/.idea/libraries/intellij_markdown.xml b/.idea/libraries/intellij_markdown.xml
deleted file mode 100644
index 40847321e580..000000000000
--- a/.idea/libraries/intellij_markdown.xml
+++ /dev/null
@@ -1,10 +0,0 @@
-<component name="libraryTable">
-  <library name="intellij-markdown" type="repository">
-    <properties include-transitive-deps="false" maven-id="org.jetbrains:markdown:0.1.41" />
-    <CLASSES>
-      <root url="jar://$MAVEN_REPOSITORY$/org/jetbrains/markdown/0.1.41/markdown-0.1.41.jar!/" />
-    </CLASSES>
-    <JAVADOC />
-    <SOURCES />
-  </library>
-</component>
\ No newline at end of file
diff --git a/.idea/libraries/jetbrains_markdown_jvm.xml b/.idea/libraries/jetbrains_markdown_jvm.xml
new file mode 100644
index 000000000000..5c111da39e42
--- /dev/null
+++ b/.idea/libraries/jetbrains_markdown_jvm.xml
@@ -0,0 +1,18 @@
+<component name="libraryTable">
+  <library name="jetbrains.markdown.jvm" type="repository">
+    <properties maven-id="org.jetbrains:markdown-jvm:0.3.0">
+      <exclude>
+        <dependency maven-id="org.jetbrains:annotations" />
+        <dependency maven-id="org.jetbrains.kotlin:kotlin-stdlib-common" />
+        <dependency maven-id="org.jetbrains.kotlin:kotlin-stdlib" />
+      </exclude>
+    </properties>
+    <CLASSES>
+      <root url="jar://$MAVEN_REPOSITORY$/org/jetbrains/markdown-jvm/0.3.0/markdown-jvm-0.3.0.jar!/" />
+    </CLASSES>
+    <JAVADOC />
+    <SOURCES>
+      <root url="jar://$MAVEN_REPOSITORY$/org/jetbrains/markdown-jvm/0.3.0/markdown-jvm-0.3.0-sources.jar!/" />
+    </SOURCES>
+  </library>
+</component>
\ No newline at end of file
diff --git a/platform/build-scripts/groovy/org/jetbrains/intellij/build/CommunityLibraryLicenses.groovy b/platform/build-scripts/groovy/org/jetbrains/intellij/build/CommunityLibraryLicenses.groovy
index 07a90e5bdc10..862f55df5c51 100644
--- a/platform/build-scripts/groovy/org/jetbrains/intellij/build/CommunityLibraryLicenses.groovy
+++ b/platform/build-scripts/groovy/org/jetbrains/intellij/build/CommunityLibraryLicenses.groovy
@@ -1,4 +1,4 @@
-// Copyright 2000-2021 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
+// Copyright 2000-2022 JetBrains s.r.o. and contributors. Use of this source code is governed by the Apache 2.0 license.
 package org.jetbrains.intellij.build
 
 import groovy.transform.CompileStatic
@@ -767,9 +767,9 @@ final class CommunityLibraryLicenses {
     jetbrainsLibrary("find-file-model"),
     jetbrainsLibrary("git-learning-project"),
     jetbrainsLibrary("intellij-coverage"),
-    jetbrainsLibrary("intellij-markdown"),
     jetbrainsLibrary("intellij-test-discovery"),
     jetbrainsLibrary("io.ktor.network.jvm"),
+    jetbrainsLibrary("jetbrains.markdown.jvm"),
     jetbrainsLibrary("jetbrains.research.refactorinsight.kotlin.impl"),
     jetbrainsLibrary("jps-build-script-dependencies-bootstrap"),
     jetbrainsLibrary("jshell-frontend"),
@@ -819,4 +819,4 @@ final class CommunityLibraryLicenses {
     jetbrainsLibrary("tips-idea-ce"),
     jetbrainsLibrary("tips-pycharm-community"),
   ] as List<LibraryLicense>
-}
+}
\ No newline at end of file
diff --git a/platform/collaboration-tools/intellij.platform.collaborationTools.iml b/platform/collaboration-tools/intellij.platform.collaborationTools.iml
index d8196ee7b8c5..50aaf0fc18d1 100644
--- a/platform/collaboration-tools/intellij.platform.collaborationTools.iml
+++ b/platform/collaboration-tools/intellij.platform.collaborationTools.iml
@@ -34,7 +34,7 @@
     <orderEntry type="library" name="caffeine" level="project" />
     <orderEntry type="module" module-name="intellij.platform.collaborationTools.auth" />
     <orderEntry type="library" name="kotlinx-coroutines-jdk8" level="project" />
-    <orderEntry type="library" name="intellij-markdown" level="project" />
+    <orderEntry type="library" name="jetbrains.markdown.jvm" level="project" />
     <orderEntry type="library" scope="TEST" name="kotlin-test" level="project" />
   </component>
 </module>
\ No newline at end of file
diff --git a/platform/markdown-utils/intellij.platform.markdown.utils.iml b/platform/markdown-utils/intellij.platform.markdown.utils.iml
index 97594957e143..2ada5ceb1ce6 100644
--- a/platform/markdown-utils/intellij.platform.markdown.utils.iml
+++ b/platform/markdown-utils/intellij.platform.markdown.utils.iml
@@ -11,7 +11,7 @@
     <orderEntry type="module" module-name="intellij.platform.ide" />
     <orderEntry type="module" module-name="intellij.platform.util.ui" />
     <orderEntry type="library" name="kotlin-stdlib-jdk8" level="project" />
-    <orderEntry type="library" name="intellij-markdown" level="project" />
+    <orderEntry type="library" name="jetbrains.markdown.jvm" level="project" />
     <orderEntry type="library" scope="TEST" name="JUnit4" level="project" />
     <orderEntry type="library" scope="TEST" name="kotlin-test" level="project" />
   </component>
diff --git a/plugins/github/intellij.vcs.github.iml b/plugins/github/intellij.vcs.github.iml
index c31789b1a9c1..a0d9887b496d 100644
--- a/plugins/github/intellij.vcs.github.iml
+++ b/plugins/github/intellij.vcs.github.iml
@@ -50,6 +50,6 @@
     <orderEntry type="module" module-name="intellij.platform.collaborationTools.auth" />
     <orderEntry type="module" module-name="intellij.platform.markdown.utils" />
     <orderEntry type="library" name="kotlinx-coroutines-jdk8" level="project" />
-    <orderEntry type="library" name="intellij-markdown" level="project" />
+    <orderEntry type="library" name="jetbrains.markdown.jvm" level="project" />
   </component>
 </module>
\ No newline at end of file
diff --git a/plugins/kotlin/idea/kotlin.idea.iml b/plugins/kotlin/idea/kotlin.idea.iml
index c3f5e2fb9dad..bf14771af988 100644
--- a/plugins/kotlin/idea/kotlin.idea.iml
+++ b/plugins/kotlin/idea/kotlin.idea.iml
@@ -63,7 +63,7 @@
     <orderEntry type="module" module-name="intellij.platform.structuralSearch" />
     <orderEntry type="module" module-name="intellij.platform.duplicates.analysis" />
     <orderEntry type="module" module-name="intellij.platform.codeStyle.impl" />
-    <orderEntry type="library" name="intellij-markdown" level="project" />
+    <orderEntry type="library" name="jetbrains.markdown.jvm" level="project" />
     <orderEntry type="module" module-name="intellij.java.compiler.impl" />
     <orderEntry type="library" name="Velocity" level="project" />
     <orderEntry type="module" module-name="intellij.platform.builtInServer.impl" />
diff --git a/plugins/markdown/core/intellij.markdown.core.iml b/plugins/markdown/core/intellij.markdown.core.iml
index ed0a4bb5e004..ea83696faa20 100644
--- a/plugins/markdown/core/intellij.markdown.core.iml
+++ b/plugins/markdown/core/intellij.markdown.core.iml
@@ -24,7 +24,7 @@
     <orderEntry type="module" module-name="intellij.platform.core.ui" />
     <orderEntry type="module" module-name="intellij.platform.images" />
     <orderEntry type="module" module-name="intellij.platform.codeStyle.impl" />
-    <orderEntry type="library" name="intellij-markdown" level="project" />
+    <orderEntry type="library" name="jetbrains.markdown.jvm" level="project" />
     <orderEntry type="module" module-name="intellij.platform.ide.util.io" />
     <orderEntry type="module" module-name="intellij.platform.ide.util.netty" />
     <orderEntry type="module" module-name="intellij.platform.collaborationTools" />
diff --git a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/lexer/MarkdownLexerAdapter.java b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/lexer/MarkdownLexerAdapter.java
index bb7697522fd5..f7e58a749866 100644
--- a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/lexer/MarkdownLexerAdapter.java
+++ b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/lexer/MarkdownLexerAdapter.java
@@ -32,7 +32,7 @@ public class MarkdownLexerAdapter extends LexerBase {
   @Override
   public void start(@NotNull CharSequence buffer, int startOffset, int endOffset, int initialState) {
     this.endOffset = endOffset;
-    delegateLexer.start(buffer, startOffset, endOffset);
+    delegateLexer.start(buffer, startOffset, endOffset, initialState);
   }
 
   @Override
diff --git a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/CommentAwareLinkReferenceDefinitionProvider.kt b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/CommentAwareLinkReferenceDefinitionProvider.kt
index d1b7ba6fef1d..2ffcb4cad894 100644
--- a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/CommentAwareLinkReferenceDefinitionProvider.kt
+++ b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/CommentAwareLinkReferenceDefinitionProvider.kt
@@ -23,7 +23,7 @@ class CommentAwareLinkReferenceDefinitionProvider : MarkerBlockProvider<MarkerPr
       return emptyList()
     }
 
-    val matchResult = LinkReferenceDefinitionProvider.matchLinkDefinition(pos.textFromPosition) ?: return emptyList()
+    val matchResult = LinkReferenceDefinitionProvider.matchLinkDefinition(pos.textFromPosition, 0) ?: return emptyList()
     for ((i, range) in matchResult.withIndex()) {
       productionHolder.addProduction(listOf(SequentialParser.Node(
         addToRangeAndWiden(range, pos.offset), when (i) {
diff --git a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/GFMCommentAwareMarkerProcessor.kt b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/GFMCommentAwareMarkerProcessor.kt
index f9c027e32e97..d47e65425b1d 100644
--- a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/GFMCommentAwareMarkerProcessor.kt
+++ b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/parser/GFMCommentAwareMarkerProcessor.kt
@@ -11,6 +11,7 @@ import org.intellij.markdown.parser.MarkerProcessor
 import org.intellij.markdown.parser.MarkerProcessorFactory
 import org.intellij.markdown.parser.ProductionHolder
 import org.intellij.markdown.parser.constraints.MarkdownConstraints
+import org.intellij.markdown.parser.constraints.getCharsEaten
 import org.intellij.markdown.parser.markerblocks.MarkerBlockProvider
 import org.intellij.markdown.parser.markerblocks.providers.AtxHeaderProvider
 import org.intellij.markdown.parser.markerblocks.providers.LinkReferenceDefinitionProvider
@@ -25,7 +26,7 @@ class GFMCommentAwareMarkerProcessor(productionHolder: ProductionHolder, constra
     .filterNot { it is LinkReferenceDefinitionProvider }
     .plus(listOf(
       GitHubTableMarkerProvider(),
-      AtxHeaderProvider(false),
+      AtxHeaderProvider(),
       CommentAwareLinkReferenceDefinitionProvider()))
 
   override fun populateConstraintsTokens(pos: LookaheadText.Position,
@@ -46,13 +47,11 @@ class GFMCommentAwareMarkerProcessor(productionHolder: ProductionHolder, constra
       return
     }
 
-    val type = when (constraints.getLastType()) {
-      '>' ->
-        MarkdownTokenTypes.BLOCK_QUOTE
-      '.', ')' ->
-        MarkdownTokenTypes.LIST_NUMBER
-      else ->
-        MarkdownTokenTypes.LIST_BULLET
+    check(constraints.types.isNotEmpty())
+    val type = when (constraints.types.last()) {
+      '>' -> MarkdownTokenTypes.BLOCK_QUOTE
+      '.', ')' -> MarkdownTokenTypes.LIST_NUMBER
+      else -> MarkdownTokenTypes.LIST_BULLET
     }
     val middleOffset = pos.offset - pos.offsetInCurrentLine + offset
     val endOffset = min(pos.offset - pos.offsetInCurrentLine + constraints.getCharsEaten(pos.currentLine),
diff --git a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/psi/impl/MarkdownList.java b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/psi/impl/MarkdownList.java
index b22a9d9b666b..8adfd3a3bbb5 100644
--- a/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/psi/impl/MarkdownList.java
+++ b/plugins/markdown/core/src/org/intellij/plugins/markdown/lang/psi/impl/MarkdownList.java
@@ -3,12 +3,12 @@ package org.intellij.plugins.markdown.lang.psi.impl;
 import com.intellij.icons.AllIcons;
 import com.intellij.lang.ASTNode;
 import com.intellij.navigation.ItemPresentation;
-import com.intellij.psi.PsiElement;
 import com.intellij.psi.PsiElementVisitor;
 import org.intellij.plugins.markdown.lang.MarkdownElementTypes;
 import org.intellij.plugins.markdown.lang.psi.MarkdownElementVisitor;
 import org.intellij.plugins.markdown.util.MarkdownPsiUtil;
 import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
 
 import javax.swing.*;
 
@@ -43,14 +43,10 @@ public class MarkdownList extends MarkdownCompositePsiElementBase {
     return new ItemPresentation() {
       @Override
       public String getPresentableText() {
-        PsiElement[] parentChildren = getParent().getChildren();
-        if (MarkdownPsiUtil.isSimpleNestedList(parentChildren)) {
-          ItemPresentation parentPresentation = getParent().getNode().getPsi(MarkdownListItem.class).getPresentation();
-          if (parentPresentation != null) {
-            return parentPresentation.getPresentableText();
-          }
+        final var nestedPresentation = getSimpleNestedPresentation(MarkdownList.this);
+        if (nestedPresentation != null) {
+          return nestedPresentation.getPresentableText();
         }
-
         return getNode().getElementType() == MarkdownElementTypes.ORDERED_LIST
                ? ORDERED_LIST_TEXT
                : UNORDERED_LIST_TEXT;
@@ -58,14 +54,10 @@ public class MarkdownList extends MarkdownCompositePsiElementBase {
 
       @Override
       public String getLocationString() {
-        PsiElement[] parentChildren = getParent().getChildren();
-        if (MarkdownPsiUtil.isSimpleNestedList(parentChildren)) {
-          ItemPresentation parentPresentation = getParent().getNode().getPsi(MarkdownListItem.class).getPresentation();
-          if (parentPresentation != null) {
-            return parentPresentation.getLocationString();
-          }
+        final var nestedPresentation = getSimpleNestedPresentation(MarkdownList.this);
+        if (nestedPresentation != null) {
+          return nestedPresentation.getLocationString();
         }
-
         return null;
       }
 
@@ -77,4 +69,12 @@ public class MarkdownList extends MarkdownCompositePsiElementBase {
       }
     };
   }
+
+  private static @Nullable ItemPresentation getSimpleNestedPresentation(@NotNull MarkdownList element) {
+    final var parent = element.getParent();
+    if (MarkdownPsiUtil.isSimpleNestedList(parent.getChildren()) && parent instanceof MarkdownListItem) {
+      return ((MarkdownListItem)parent).getPresentation();
+    }
+    return null;
+  }
 }
diff --git a/plugins/markdown/test/data/formatter/headers_after.md b/plugins/markdown/test/data/formatter/headers_after.md
index 4ae88eb02260..e096c6d8cd71 100644
--- a/plugins/markdown/test/data/formatter/headers_after.md
+++ b/plugins/markdown/test/data/formatter/headers_after.md
@@ -2,13 +2,13 @@
 
 # Header with excessive spaces
 
-# Header with missing spaces
+#Header with missing spaces
 
 # Minor header
 
 #### Minor header with excessive spaces
 
-#### Minor header with missing spaces
+####Minor header with missing spaces
 
 # Two headers one by one
 
@@ -40,7 +40,7 @@ One paragraph
 
 * # Normal header in list
 
-* # Header with missing space in list
+* #Header with missing space in list
 
 * # Header with excessive spaces in list
 
@@ -55,7 +55,8 @@ One paragraph
 
 > # Normal header in blockquote
 
-> # Header with missing space in blockquote
+> #Header with missing space in
+blockquote
 
 > # Header with excessive spaces in blockquote
 
diff --git a/plugins/markdown/test/data/formatter/smoke_after.md b/plugins/markdown/test/data/formatter/smoke_after.md
index b0fe81ae01b2..393fd0e03fe5 100644
--- a/plugins/markdown/test/data/formatter/smoke_after.md
+++ b/plugins/markdown/test/data/formatter/smoke_after.md
@@ -3,8 +3,7 @@
 Sample paragraph with two spaces
 
 Other paragraph with newline too early
-
-# Other header
+#Other header
 
 ```kotlin
 val a = 12
diff --git a/plugins/markdown/test/data/structureView/withLists/multipleCompositeChildrenInLists.md b/plugins/markdown/test/data/structureView/withLists/multipleCompositeChildrenInLists.md
index 35f895be1fb3..a94ceda6dfb0 100644
--- a/plugins/markdown/test/data/structureView/withLists/multipleCompositeChildrenInLists.md
+++ b/plugins/markdown/test/data/structureView/withLists/multipleCompositeChildrenInLists.md
@@ -1,4 +1,4 @@
-#Mad party
+# Mad party
 
 * [IntelliJ platform overview](#intellij-platform-overview)
   1. # First
@@ -16,4 +16,4 @@
       * Mysterious item
       #### Header 4
 * [How to configure development environment](#configure-idea-development-environment)
-* #Header 1
+* # Header 1