diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lossyEncoding/Text.txt b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lossyEncoding/Text.txt
index acbe86c7c895..8f7b7c24f052 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lossyEncoding/Text.txt
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/lossyEncoding/Text.txt
@@ -1 +1 @@
-abcd
+abcd<caret>
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LossyEncodingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LossyEncodingTest.java
index 1c96e84bf3fd..6f7f21d5cc36 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LossyEncodingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/LossyEncodingTest.java
@@ -36,8 +36,7 @@ public class LossyEncodingTest extends LightDaemonAnalyzerTestCase {
     int end = myEditor.getCaretModel().getOffset();
 
     Collection<HighlightInfo> infos = doHighlighting();
-    assertEquals(1, infos.size());
-    HighlightInfo info = infos.iterator().next();
+    HighlightInfo info = assertOneElement(infos);
     assertEquals("Unsupported characters for the charset 'US-ASCII'", info.description);
     assertEquals(start, info.startOffset);
     assertEquals(end, info.endOffset);
@@ -92,4 +91,4 @@ public class LossyEncodingTest extends LightDaemonAnalyzerTestCase {
   private void doTest(@NonNls String filePath) throws Exception {
     doTest(BASE_PATH + "/" + filePath, true, false);
   }
-}
\ No newline at end of file
+}
diff --git a/java/testFramework/src/com/intellij/codeInsight/CodeInsightTestCase.java b/java/testFramework/src/com/intellij/codeInsight/CodeInsightTestCase.java
index e69bad860077..b2d25802d9d5 100644
--- a/java/testFramework/src/com/intellij/codeInsight/CodeInsightTestCase.java
+++ b/java/testFramework/src/com/intellij/codeInsight/CodeInsightTestCase.java
@@ -623,9 +623,18 @@ public abstract class CodeInsightTestCase extends PsiTestCase {
   }
 
   protected void type(char c) {
+    type(c, getEditor());
+  }
+
+  protected static void type(char c, Editor editor) {
     EditorActionManager actionManager = EditorActionManager.getInstance();
+    DataContext dataContext = DataManager.getInstance().getDataContext();
+    if (c == '\n') {
+      actionManager.getActionHandler(IdeActions.ACTION_EDITOR_ENTER).execute(editor, dataContext);
+      return;
+    }
     TypedAction action = actionManager.getTypedAction();
-    action.actionPerformed(getEditor(), c, DataManager.getInstance().getDataContext());
+    action.actionPerformed(editor, c, dataContext);
   }
 
   protected void caretRight() {
@@ -633,6 +642,11 @@ public abstract class CodeInsightTestCase extends PsiTestCase {
     EditorActionHandler action = actionManager.getActionHandler(IdeActions.ACTION_EDITOR_MOVE_CARET_RIGHT);
     action.execute(getEditor(), DataManager.getInstance().getDataContext());
   }
+  protected void deleteLine() {
+    EditorActionManager actionManager = EditorActionManager.getInstance();
+    EditorActionHandler action = actionManager.getActionHandler(IdeActions.ACTION_EDITOR_DELETE_LINE);
+    action.execute(getEditor(), DataManager.getInstance().getDataContext());
+  }
 
   protected void type(@NonNls String s) {
     for (char c : s.toCharArray()) {
@@ -647,15 +661,18 @@ public abstract class CodeInsightTestCase extends PsiTestCase {
   }
 
   protected void backspace() {
+    backspace(getEditor());
+  }
+  protected void backspace(final Editor editor) {
     CommandProcessor.getInstance().executeCommand(getProject(), new Runnable() {
       @Override
       public void run() {
         EditorActionManager actionManager = EditorActionManager.getInstance();
         EditorActionHandler actionHandler = actionManager.getActionHandler(IdeActions.ACTION_EDITOR_BACKSPACE);
 
-        actionHandler.execute(getEditor(), DataManager.getInstance().getDataContext());
+        actionHandler.execute(editor, DataManager.getInstance().getDataContext());
       }
-    }, "backspace", getEditor().getDocument());
+    }, "backspace", editor.getDocument());
   }
 
   protected void ctrlShiftF7() {
diff --git a/platform/lang-impl/src/com/intellij/codeInsight/daemon/impl/UpdateHighlightersUtil.java b/platform/lang-impl/src/com/intellij/codeInsight/daemon/impl/UpdateHighlightersUtil.java
index 00a3dd6d9342..48f71b088b5f 100644
--- a/platform/lang-impl/src/com/intellij/codeInsight/daemon/impl/UpdateHighlightersUtil.java
+++ b/platform/lang-impl/src/com/intellij/codeInsight/daemon/impl/UpdateHighlightersUtil.java
@@ -163,7 +163,7 @@ public class UpdateHighlightersUtil {
                                                   int startOffset,
                                                   int endOffset,
                                                   @NotNull final HighlightInfo info,
-                                                         @Nullable final EditorColorsScheme colorsScheme, // if null global scheme will be used
+                                                  @Nullable final EditorColorsScheme colorsScheme, // if null global scheme will be used
                                                   final int group) {
     ApplicationManager.getApplication().assertIsDispatchThread();
     if (info.isFileLevelAnnotation || info.getGutterIconRenderer() != null) return;
@@ -313,10 +313,10 @@ public class UpdateHighlightersUtil {
       public boolean process(HighlightInfo info) {
         if (info.group == group) {
           RangeHighlighter highlighter = info.highlighter;
-          int hiEnd = highlighter.getEndOffset();
           int hiStart = highlighter.getStartOffset();
+          int hiEnd = highlighter.getEndOffset();
           boolean willBeRemoved = hiEnd == document.getTextLength() && range.getEndOffset() == document.getTextLength()
-                                  || range.intersects(hiStart, hiEnd);
+                                  || range.intersectsStrict(hiStart, hiEnd) || range.containsRange(hiStart, hiEnd) || hiStart <= range.getStartOffset() && hiEnd >= range.getEndOffset();
           if (willBeRemoved) {
             infosToRemove.recycleHighlighter(highlighter);
             info.highlighter = null;
diff --git a/platform/util/src/com/intellij/openapi/util/TextRange.java b/platform/util/src/com/intellij/openapi/util/TextRange.java
index 3fd084e3269a..83af33e86d94 100644
--- a/platform/util/src/com/intellij/openapi/util/TextRange.java
+++ b/platform/util/src/com/intellij/openapi/util/TextRange.java
@@ -112,7 +112,10 @@ public class TextRange {
     return Math.max(myStartOffset, startOffset) <= Math.min(myEndOffset, endOffset);
   }
   public boolean intersectsStrict(@NotNull TextRange textRange) {
-    return Math.max(myStartOffset, textRange.getStartOffset()) < Math.min(myEndOffset, textRange.getEndOffset());
+    return intersectsStrict(textRange.getStartOffset(), textRange.getEndOffset());
+  }
+  public boolean intersectsStrict(int startOffset, int endOffset) {
+    return Math.max(myStartOffset, startOffset) < Math.min(myEndOffset, endOffset);
   }
 
   @Nullable