diff --git a/src/edit.c b/src/edit.c
index 9a82432..6fc1e35 100644
--- a/src/edit.c
+++ b/src/edit.c
@@ -1038,8 +1038,10 @@
 	    if (!p_im)
 		goto normalchar;	/* insert CTRL-Z as normal char */
 	    do_cmdline_cmd((char_u *)"stop");
-	    c = Ctrl_O;
-	    /*FALLTHROUGH*/
+#ifdef CURSOR_SHAPE
+	    ui_cursor_shape();		/* may need to update cursor shape */
+#endif
+	    continue;
 
 	case Ctrl_O:	/* execute one command */
 #ifdef FEAT_COMPL_FUNC