diff --git a/src/ops.c b/src/ops.c
index 98bd2d1..cf5d1b1 100644
--- a/src/ops.c
+++ b/src/ops.c
@@ -4153,9 +4153,10 @@
     int	    save_undo;
 {
     char_u	*curr = NULL;
+    char_u      *curr_start = NULL;
     char_u	*cend;
     char_u	*newp;
-    char_u	*spaces;	/* number of spaces inserte before a line */
+    char_u	*spaces;	/* number of spaces inserted before a line */
     int		endcurr1 = NUL;
     int		endcurr2 = NUL;
     int		currsize = 0;	/* size of the current line */
@@ -4181,7 +4182,7 @@
      */
     for (t = 0; t < count; ++t)
     {
-	curr = ml_get((linenr_T)(curwin->w_cursor.lnum + t));
+	curr = curr_start = ml_get((linenr_T)(curwin->w_cursor.lnum + t));
 	if (insert_space && t > 0)
 	{
 	    curr = skipwhite(curr);
@@ -4265,10 +4266,10 @@
 	    copy_spaces(cend, (size_t)(spaces[t]));
 	}
 	mark_col_adjust(curwin->w_cursor.lnum + t, (colnr_T)0, (linenr_T)-t,
-				 (long)(cend - newp + spaces[t]));
+			 (long)(cend - newp + spaces[t] - (curr - curr_start)));
 	if (t == 0)
 	    break;
-	curr = ml_get((linenr_T)(curwin->w_cursor.lnum + t - 1));
+	curr = curr_start = ml_get((linenr_T)(curwin->w_cursor.lnum + t - 1));
 	if (insert_space && t > 1)
 	    curr = skipwhite(curr);
 	currsize = (int)STRLEN(curr);
diff --git a/src/testdir/test68.in b/src/testdir/test68.in
index 94104c0..8d0c501 100644
--- a/src/testdir/test68.in
+++ b/src/testdir/test68.in
@@ -51,6 +51,17 @@
 }
 
 STARTTEST
+/^{/+2
+:set tw& fo=a
+I^^
+ENDTEST
+
+{
+   1aa
+   2bb
+}
+
+STARTTEST
 :g/^STARTTEST/.,/^ENDTEST/d
 :1;/^Results/,$wq! test.out
 ENDTEST
diff --git a/src/testdir/test68.ok b/src/testdir/test68.ok
index 85f35cf..aebe364 100644
--- a/src/testdir/test68.ok
+++ b/src/testdir/test68.ok
@@ -33,3 +33,6 @@
 #a b
 }
 
+
+{ 1aa ^^2bb }
+
diff --git a/src/version.c b/src/version.c
index 38a0813..6d19c82 100644
--- a/src/version.c
+++ b/src/version.c
@@ -715,6 +715,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    20,
+/**/
     19,
 /**/
     18,