diff --git a/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/ui/ExternalProjectPathLookupElement.java b/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/ui/ExternalProjectPathLookupElement.java
index 8490eb4d8513..a5837173aeb0 100644
--- a/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/ui/ExternalProjectPathLookupElement.java
+++ b/platform/external-system-impl/src/com/intellij/openapi/externalSystem/service/ui/ExternalProjectPathLookupElement.java
@@ -49,12 +49,24 @@ public class ExternalProjectPathLookupElement extends LookupElement {
   @Override
   public void handleInsert(InsertionContext context) {
     Editor editor = context.getEditor();
+    final FoldingModel foldingModel = editor.getFoldingModel();
+    foldingModel.runBatchFoldingOperation(new Runnable() {
+      @Override
+      public void run() {
+        FoldRegion[] regions = foldingModel.getAllFoldRegions();
+        for (FoldRegion region : regions) {
+          foldingModel.removeFoldRegion(region);
+        }
+      }
+    });
+    
     final Document document = editor.getDocument();
     final int startOffset = context.getStartOffset();
-    document.replaceString(startOffset, context.getTailOffset(), myProjectPath);
+    
+    document.replaceString(startOffset, document.getTextLength(), myProjectPath);
     final Project project = context.getProject();
     PsiDocumentManager.getInstance(project).commitDocument(document);
-    final FoldingModel foldingModel = editor.getFoldingModel();
+    
     foldingModel.runBatchFoldingOperationDoNotCollapseCaret(new Runnable() {
       @Override
       public void run() {
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
index 09c4cbcd305f..8c86fe37979b 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorImpl.java
@@ -2199,7 +2199,7 @@ public final class EditorImpl extends UserDataHolderBase implements EditorEx, Hi
 
         if (hEnd >= lEnd) {
           FoldRegion collapsedFolderAt = myFoldingModel.getCollapsedRegionAtOffset(start);
-          if (collapsedFolderAt == null) {
+          if (collapsedFolderAt == null || collapsedFolderAt.getEndOffset() == lEnd) {
             position.x = drawSoftWrapAwareBackground(g, backColor, text, start, lEnd - lIterator.getSeparatorLength(), position, fontType,
                                                      defaultBackground, clip, softWrapsToSkip, caretRowPainted);