diff --git a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
index 80708e591d36..e1533448dda3 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/TypeConversionUtil.java
@@ -991,7 +991,7 @@ public class TypeConversionUtil {
           return isAssignable(leftBound, typeRight, effectiveAllowUncheckedConversion && !containsWildcards(leftBound));
         }
         else { // isSuper
-          return isAssignable(typeRight, leftBound, effectiveAllowUncheckedConversion && !containsWildcards(leftBound));
+          return isAssignable(typeRight, leftBound, false);
         }
       }
     }
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA125031.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA125031.java
new file mode 100644
index 000000000000..3bc3d9760b43
--- /dev/null
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/IDEA125031.java
@@ -0,0 +1,15 @@
+import java.util.Set;
+
+class Test {
+
+  public static void test(Set foo, Matcher<Iterable<String>> matcher) {
+    assertThat<error descr="'assertThat(Test.Matcher<? super java.util.Set>, java.util.Set)' in 'Test' cannot be applied to '(Test.Matcher<java.lang.Iterable<java.lang.String>>, java.util.Set)'">(matcher, foo)</error>;
+
+    Matcher<Iterable<String>> b = null;
+    <error descr="Incompatible types. Found: 'Test.Matcher<java.lang.Iterable<java.lang.String>>', required: 'Test.Matcher<? super java.util.Set>'">Matcher<? super Set> a = b;</error>
+  }
+
+  public static <T> void assertThat(Matcher<? super T> matcher, T actual) {}
+  
+  static class Matcher<K> {}
+}
diff --git a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
index 03c4c9b2156a..75ecfa2dfc56 100644
--- a/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
+++ b/java/java-tests/testSrc/com/intellij/codeInsight/daemon/GenericsHighlightingTest.java
@@ -351,6 +351,7 @@ public class GenericsHighlightingTest extends LightDaemonAnalyzerTestCase {
   public void testIDEA124352() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA124019() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
   public void testIDEA123509() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
+  public void testIDEA125031() { doTest(LanguageLevel.JDK_1_7, JavaSdkVersion.JDK_1_7, false); }
 
   public void testJavaUtilCollections_NoVerify() throws Exception {
     PsiClass collectionsClass = getJavaFacade().findClass("java.util.Collections", GlobalSearchScope.moduleWithLibrariesScope(getModule()));