do not accept deep bound promotion in type parameters withing bound check (IDEA-107654)

java/java-impl/src/com/intellij/codeInsight/daemon/impl/analysis/GenericsHighlightUtil.java

@@ -350,6 +350,7 @@ public class GenericsHighlightUtil {
           return false;
         }
       }
+      if (psiClass instanceof PsiTypeParameter && psiClass.getExtendsListTypes().length != 0) return false;
     }
     if (!type.isRaw()) return true;
     //allow unchecked conversions in method calls but not in type declaration

java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA107654.java

@@ -0,0 +1,3 @@
+class X<A extends X<A>> {
+    static class Y<B extends  Y> extends X<<error descr="Type parameter 'B' is not within its bound; should extend 'X<B>'">B</error>> {}
+}

java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java

@@ -247,6 +247,10 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testCaptureTopLevelWildcardsForConditionalExpression() throws Exception { doTest5(false);}
   public void testGenericsOverrideMethodInRawInheritor() throws Exception { doTest5(false);}
 
+  public void testIDEA107654() throws Exception {
+    doTest5(false);
+  }
+
   public void testIDEA27185(){ doTest(LanguageLevel.JDK_1_6, JavaSdkVersion.JDK_1_6, false); }
   public void testIDEA67571(){ doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testTypeArgumentsOnRawType(){ doTest(LanguageLevel.JDK_1_6, JavaSdkVersion.JDK_1_6, false); }