diff --git a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
index ab0f53555ac9..56314ae8291b 100644
--- a/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
+++ b/platform/lang-impl/src/com/intellij/find/EditorSearchComponent.java
@@ -113,16 +113,6 @@ public class EditorSearchComponent extends JPanel implements DataProvider, Selec
   @Override
   public void replaceAllPerformed(Editor e) {  }
 
-  @Override
-  public void replaceDenied() {
-    updateReplaceButton();
-  }
-
-  @Override
-  public void replaceAllowed() {
-    updateReplaceButton();
-  }
-
   private void updateReplaceButton() {
     if (myReplaceButton != null) {
       myReplaceButton.setEnabled(mySearchResults != null && mySearchResults.getCursor() != null &&
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
index 98dc5b45e4e4..b571387e4c1e 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreview.java
@@ -50,10 +50,13 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
   private static final Key<Object> IN_SELECTION_KEY = Key.create("LivePreview.IN_SELECTION_KEY");
   private static final Object IN_SELECTION1 = new Object();
   private static final Object IN_SELECTION2 = new Object();
+
   private boolean myListeningSelection = false;
   private boolean mySuppressedUpdate = false;
   private boolean myInSmartUpdate = false;
+
   private static final Key<Object> MARKER_USED = Key.create("LivePreview.MARKER_USED");
+  private static final Object YES = new Object();
 
   @Override
   public void selectionChanged(SelectionEvent e) {
@@ -361,10 +364,11 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
   private RangeHighlighter highlightRange(TextRange textRange, TextAttributes attributes, Collection<RangeHighlighter> highlighters) {
     if (myInSmartUpdate) {
       for (RangeHighlighter highlighter : myHighlighters) {
-        if (highlighter.getStartOffset() == textRange.getStartOffset() && highlighter.getEndOffset() == textRange.getEndOffset()) {
+        if (highlighter.isValid() && highlighter.getStartOffset() == textRange.getStartOffset() && highlighter.getEndOffset() == textRange.getEndOffset()) {
           if (attributes.equals(highlighter.getTextAttributes())) {
-            if (myInSmartUpdate) {
-              highlighter.putUserData(MARKER_USED, new Object());
+            highlighter.putUserData(MARKER_USED, YES);
+            if (highlighters != myHighlighters) {
+              highlighters.add(highlighter);
             }
             return highlighter;
           }
@@ -373,7 +377,7 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
     }
     final RangeHighlighter highlighter = doHightlightRange(textRange, attributes, highlighters);
     if (myInSmartUpdate) {
-      highlighter.putUserData(MARKER_USED, new Object());
+      highlighter.putUserData(MARKER_USED, YES);
     }
     return highlighter;
   }
@@ -384,8 +388,16 @@ public class LivePreview extends DocumentAdapter implements ReplacementView.Dele
     highlightManager.addRangeHighlight(mySearchResults.getEditor(),
                                        textRange.getStartOffset(), textRange.getEndOffset(),
                                        attributes, false, dummy);
-    highlighters.addAll(dummy);
-    return dummy.get(0);
+
+    final RangeHighlighter h = dummy.get(0);
+    for (RangeHighlighter highlighter : highlighters) {
+      if (h.getStartOffset() == highlighter.getStartOffset() && h.getEndOffset() == highlighter.getEndOffset() &&
+        h.getTextAttributes().equals(highlighter.getTextAttributes())) {
+        return h;
+      }
+    }
+    highlighters.add(h);
+    return h;
   }
 
 
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
index d8b38eafddfb..77be7b94990f 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/LivePreviewControllerBase.java
@@ -64,7 +64,6 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
 
   @Override
   public void searchResultsUpdated(SearchResults sr) {
-    //setReplaceDenied(false);
   }
 
   @Override
@@ -89,24 +88,9 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
     return myReplaceDenied;
   }
 
-  public void setReplaceDenied(final boolean replaceDenied) {
-    boolean changed = replaceDenied != myReplaceDenied;
-    myReplaceDenied = replaceDenied;
-    if (changed && myReplaceListener != null) {
-      if (replaceDenied) {
-        myReplaceListener.replaceDenied();
-      }
-      else {
-        myReplaceListener.replaceAllowed();
-      }
-    }
-  }
-
   public interface ReplaceListener {
     void replacePerformed(LiveOccurrence occurrence, final String replacement, final Editor editor);
     void replaceAllPerformed(Editor e);
-    void replaceDenied();
-    void replaceAllowed();
   }
 
   private ReplaceListener myReplaceListener;
@@ -146,17 +130,6 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
     Runnable request = new Runnable() {
       @Override
       public void run() {
-        Runnable denyReplace = new Runnable() {
-          @Override
-          public void run() {
-            //setReplaceDenied(true);
-          }
-        };
-        if (unitTestMode) {
-          denyReplace.run();
-        } else {
-          ApplicationManager.getApplication().invokeAndWait(denyReplace, modalityState);
-        }
         mySearchResults.updateThreadSafe(copy, allowedToChangedEditorSelection, null, stamp);
       }
     };
@@ -213,10 +186,8 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
     if (myReplaceListener != null) {
       myReplaceListener.replacePerformed(occurrence, replacement, editor);
     }
-    //setReplaceDenied(true);
     myLivePreview.inSmartUpdate();
     mySearchResults.updateThreadSafe(findModel, true, result, mySearchResults.getStamp());
-    //myLivePreview.supressUpdate();
     return result;
   }
 
@@ -251,9 +222,8 @@ public class LivePreviewControllerBase implements LivePreview.Delegate, FindUtil
 
   @Override
   public boolean shouldReplace(TextRange range, String replace) {
-    for (LiveOccurrence o : mySearchResults.getExcluded()) {
-      TextRange primaryRange = o.getPrimaryRange();
-      if (primaryRange.equals(range)) {
+    for (RangeMarker r : mySearchResults.getExcluded()) {
+      if (r.getStartOffset() == range.getStartOffset() && r.getEndOffset() == range.getEndOffset()) {
         return false;
       }
     }
diff --git a/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java b/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
index dce37e881c9e..d812c1b25b85 100644
--- a/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
+++ b/platform/lang-impl/src/com/intellij/find/impl/livePreview/SearchResults.java
@@ -7,10 +7,12 @@ import com.intellij.find.FindResult;
 import com.intellij.find.FindUtil;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.editor.Editor;
+import com.intellij.openapi.editor.RangeMarker;
 import com.intellij.openapi.fileEditor.FileDocumentManager;
 import com.intellij.openapi.project.Project;
 import com.intellij.openapi.util.TextRange;
 import com.intellij.openapi.vfs.VirtualFile;
+import com.intellij.util.containers.HashSet;
 import org.jetbrains.annotations.Nullable;
 
 import java.awt.*;
@@ -34,7 +36,7 @@ public class SearchResults {
 
   private List<LiveOccurrence> myOccurrences = new ArrayList<LiveOccurrence>();
 
-  private Set<LiveOccurrence> myExcluded = new HashSet<LiveOccurrence>();
+  private Set<RangeMarker> myExcluded = new HashSet<RangeMarker>();
 
   private Editor myEditor;
   private FindModel myFindModel;
@@ -72,19 +74,32 @@ public class SearchResults {
   }
 
   public boolean isExcluded(LiveOccurrence occurrence) {
-    return myExcluded.contains(occurrence);
+    for (RangeMarker rangeMarker : myExcluded) {
+      if (rangeMarker.getStartOffset() == occurrence.getPrimaryRange().getStartOffset() && rangeMarker.getEndOffset() == occurrence.getPrimaryRange().getEndOffset()) {
+        return true;
+      }
+    }
+    return false;
   }
 
   public void exclude(LiveOccurrence occurrence) {
-    if (myExcluded.contains(occurrence)) {
-      myExcluded.remove(occurrence);
-    } else {
-      myExcluded.add(occurrence);
+    boolean include = false;
+    final TextRange r = occurrence.getPrimaryRange();
+    for (RangeMarker rangeMarker : myExcluded) {
+      if (rangeMarker.getStartOffset() == r.getStartOffset() && rangeMarker.getEndOffset() == r.getEndOffset()) {
+        myExcluded.remove(rangeMarker);
+        rangeMarker.dispose();
+        include = true;
+        break;
+      }
+    }
+    if (!include) {
+      myExcluded.add(myEditor.getDocument().createRangeMarker(r.getStartOffset(), r.getEndOffset(), true));
     }
     notifyChanged();
   }
 
-  public Set<LiveOccurrence> getExcluded() {
+  public Set<RangeMarker> getExcluded() {
     return myExcluded;
   }
 
@@ -230,6 +245,7 @@ public class SearchResults {
 
       myFindModel = findModel;
       updateCursor(oldCursorRange, next);
+      updateExcluded();
       myActualFound = size;
       notifyChanged();
       if (oldCursorRange == null || myCursor == null || !myCursor.getPrimaryRange().equals(oldCursorRange)) {
@@ -238,6 +254,17 @@ public class SearchResults {
     }
   }
 
+  private void updateExcluded() {
+    Set<RangeMarker> invalid = new HashSet<RangeMarker>();
+    for (RangeMarker marker : myExcluded) {
+      if (!marker.isValid()) {
+        invalid.add(marker);
+        marker.dispose();
+      }
+    }
+    myExcluded.removeAll(invalid);
+  }
+
   private void updateCursor(@Nullable TextRange oldCursorRange, @Nullable TextRange next) {
     boolean justReplaced = next != null;
     if (justReplaced || !tryToRepairOldCursor(oldCursorRange)) {