diff --git a/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java b/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
index 62914df25d0b..94c08a1a2f6c 100644
--- a/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
+++ b/java/java-psi-api/src/com/intellij/psi/util/TypesDistinctProver.java
@@ -79,9 +79,9 @@ public class TypesDistinctProver {
         return proveArrayTypeDistinct(((PsiWildcardType)type1).getManager().getProject(), (PsiArrayType)type2, type1);
       }
     }
-    if (type1 instanceof PsiCapturedWildcardType) return provablyDistinct(((PsiCapturedWildcardType)type1).getWildcard(), type2, level +1);
+    if (type1 instanceof PsiCapturedWildcardType) return provablyDistinct(((PsiCapturedWildcardType)type1).getWildcard(), type2, level);
 
-    if (type2 instanceof PsiWildcardType || type2 instanceof PsiCapturedWildcardType) return provablyDistinct(type2, type1, level +1);
+    if (type2 instanceof PsiWildcardType || type2 instanceof PsiCapturedWildcardType) return provablyDistinct(type2, type1, level);
 
 
     final PsiClassType.ClassResolveResult classResolveResult1 = PsiUtil.resolveGenericsClassInType(type1);
diff --git a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/WildcardTypes.java b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/WildcardTypes.java
index f5483d41ed6f..b230591054a9 100644
--- a/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/WildcardTypes.java
+++ b/java/java-tests/testData/codeInsight/daemonCodeAnalyzer/genericsHighlighting/WildcardTypes.java
@@ -231,4 +231,16 @@ class IDEA91481 {
   class BeanBuilder<<warning descr="Type parameter 'T' is never used">T</warning>> {}
   class Bean {}
   class DirectBean extends Bean {}
+}
+
+class IDEA89640 {
+  interface X {}
+  class Y<<warning descr="Type parameter 'T' is never used">T</warning> extends X> {}
+
+  public static void main(String[] args) {
+    Y<? extends X> a = null;
+    Y<? extends X> b = null;
+    boolean flag = a  != b; 
+    System.out.println(flag);
+  }
 }
\ No newline at end of file