diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorDocumentPriorities.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorDocumentPriorities.java
index 79cf1924369c..991248350268 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorDocumentPriorities.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/EditorDocumentPriorities.java
@@ -32,8 +32,8 @@ public class EditorDocumentPriorities {
    */
   public static final int RANGE_MARKER = 40;
 
-  public static final int SOFT_WRAP_MODEL = 60;
-  public static final int FOLD_MODEL = 80;
+  public static final int FOLD_MODEL = 60;
+  public static final int SOFT_WRAP_MODEL = 80;
   public static final int LEXER_EDITOR = 100;
   public static final int CARET_MODEL = 120;
   public static final int SELECTION_MODEL = 140;
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldingModelImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldingModelImpl.java
index e2921401f901..f46d773a9f57 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldingModelImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/FoldingModelImpl.java
@@ -167,9 +167,9 @@ public class FoldingModelImpl implements FoldingModelEx, PrioritizedDocumentList
       final FoldingGroup group = region.getGroup();
       if (group != null) {
         myGroups.putValue(group, region);
-        for (FoldingListener listener : myListeners) {
-          listener.onFoldRegionStateChange(region);
-        }
+      }
+      for (FoldingListener listener : myListeners) {
+        listener.onFoldRegionStateChange(region);
       }
       return true;
     }
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/SoftWrapModelImpl.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/SoftWrapModelImpl.java
index af88b5231bd8..a2a1975a9759 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/SoftWrapModelImpl.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/SoftWrapModelImpl.java
@@ -76,6 +76,17 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
   private int myActive;
   private boolean myUseSoftWraps;
 
+  /**
+   * Soft wraps need to be kept up-to-date on all editor modification (changing text, adding/removing/expanding/collapsing fold
+   * regions etc). Hence, we need to react to all types of target changes. However, soft wraps processing uses various information
+   * provided by editor and there is a possible case that that information is inconsistent during update time (e.g. fold model 
+   * advances fold region offsets when end-user types before it, hence, fold regions data is inconsistent between the moment
+   * when text changes are applied to the document and fold data is actually updated).
+   * <p/>
+   * Current field serves as a flag that indicates if all preliminary actions necessary for successful soft wraps processing is done. 
+   */
+  private boolean myUpdateInProgress;
+
   public SoftWrapModelImpl(@NotNull EditorEx editor) {
     this(editor, new SoftWrapsStorage(), new CompositeSoftWrapPainter(editor));
   }
@@ -271,7 +282,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
   @NotNull
   @Override
   public LogicalPosition visualToLogicalPosition(@NotNull VisualPosition visual) {
-    if (!prepareToMapping()) {
+    if (myUpdateInProgress || !prepareToMapping()) {
       return myEditor.visualToLogicalPosition(visual, false);
     }
     myActive++;
@@ -287,7 +298,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
   @NotNull
   @Override
   public LogicalPosition offsetToLogicalPosition(int offset) {
-    if (!prepareToMapping()) {
+    if (myUpdateInProgress || !prepareToMapping()) {
       return myEditor.offsetToLogicalPosition(offset, false);
     }
     myActive++;
@@ -302,7 +313,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @NotNull
   public LogicalPosition adjustLogicalPosition(LogicalPosition defaultLogical, int offset) {
-    if (!prepareToMapping()) {
+    if (myUpdateInProgress || !prepareToMapping()) {
       return defaultLogical;
     }
 
@@ -318,7 +329,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @NotNull
   public VisualPosition adjustVisualPosition(@NotNull LogicalPosition logical, @NotNull VisualPosition defaultVisual) {
-    if (!prepareToMapping()) {
+    if (myUpdateInProgress || !prepareToMapping()) {
       return defaultVisual;
     }
 
@@ -477,6 +488,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @Override
   public void beforeDocumentChange(DocumentEvent event) {
+    myUpdateInProgress = true;
     if (!isSoftWrappingEnabled()) {
       return;
     }
@@ -487,6 +499,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @Override
   public void documentChanged(DocumentEvent event) {
+    myUpdateInProgress = false;
     if (!isSoftWrappingEnabled()) {
       return;
     }
@@ -497,6 +510,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @Override
   public void onFoldRegionStateChange(@NotNull FoldRegion region) {
+    myUpdateInProgress = true;
     if (!isSoftWrappingEnabled() || !region.isValid()) {
       return;
     }
@@ -507,6 +521,7 @@ public class SoftWrapModelImpl implements SoftWrapModelEx, PrioritizedDocumentLi
 
   @Override
   public void onFoldProcessingEnd() {
+    myUpdateInProgress = false;
     if (!isSoftWrappingEnabled()) {
       return;
     }
diff --git a/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java b/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
index 6c6da2a5a619..518b073d1c14 100644
--- a/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
+++ b/platform/platform-impl/src/com/intellij/openapi/editor/impl/softwrap/mapping/SoftWrapApplianceManager.java
@@ -199,7 +199,7 @@ public class SoftWrapApplianceManager implements FoldingListener, DocumentListen
         processNonFoldToken();
       }
       else {
-        boolean continueProcessing = processCollapsedFoldRegion(currentFold, event);
+        boolean continueProcessing = processCollapsedFoldRegion(currentFold);
         if (!continueProcessing) {
           return false;
         }
@@ -224,11 +224,10 @@ public class SoftWrapApplianceManager implements FoldingListener, DocumentListen
    * Encapsulates logic of processing given collapsed fold region.
    *
    * @param foldRegion    target collapsed fold region to process
-   * @param event         change event that triggered the processing
    * @return              <code>true</code> if processing should be continued; <code>false</code> otherwise
    */
-  private boolean processCollapsedFoldRegion(FoldRegion foldRegion, IncrementalCacheUpdateEvent event) {
-    if (processOutOfDateFoldRegion(foldRegion, event)) {
+  private boolean processCollapsedFoldRegion(FoldRegion foldRegion) {
+    if (processOutOfDateFoldRegion(foldRegion)) {
       return false;
     }
 
@@ -298,11 +297,10 @@ public class SoftWrapApplianceManager implements FoldingListener, DocumentListen
    * This method encapsulates logic for checking and reacting on such a situation.
    * 
    * @param foldRegion    fold region that may be out-of-date
-   * @param event         change event that triggered the processing
    * @return              <code>true</code> if given fold region is really out-of-date and processing should be stopped;
    *                      <code>false</code> otherwise;
    */
-  private boolean processOutOfDateFoldRegion(FoldRegion foldRegion, IncrementalCacheUpdateEvent event) {
+  private boolean processOutOfDateFoldRegion(FoldRegion foldRegion) {
 
     Document document = myEditor.getDocument();
     
@@ -310,17 +308,11 @@ public class SoftWrapApplianceManager implements FoldingListener, DocumentListen
     // case that offsets of the trailing fold regions should be updated as well.
     IncrementalCacheUpdateEvent newEvent = new IncrementalCacheUpdateEvent(document);
 
-    // We assume here that fold model is processed after soft wrap (as it needs to perform document dimensions mapping).
-    // So, there is a possible case that user performed modifications at particular fold region but fold model is not updated yet
-    // and IterationState returns valid fold region. Hence, we introduce a dedicated check here.
-    if (!foldRegion.isValid() || (event.getExactOffsetsDiff() != 0 && foldRegion.getStartOffset() < event.getOldExactEndOffset() 
-        && foldRegion.getEndOffset() > event.getOldExactStartOffset()) || myContext.tokenStartOffset != foldRegion.getStartOffset()) 
-    {
+    if (!foldRegion.isValid() || myContext.tokenStartOffset != foldRegion.getStartOffset()) {
       myEventsStorage.add(document, newEvent);
       return true;
     }
     
-    
     if (foldRegion.getEndOffset() <= document.getTextLength()) {
       return false;
     }