diff --git a/spec/atom/editor-spec.coffee b/spec/atom/editor-spec.coffee
index da6d51df1..3756d1ec3 100644
--- a/spec/atom/editor-spec.coffee
+++ b/spec/atom/editor-spec.coffee
@@ -536,13 +536,21 @@ describe "Editor", ->
     beforeEach ->
       editor.autoIndent = true
 
-    describe "when line renders on one screen line", ->
-      describe "when newline is inserted", ->
+    describe "when editing a line that spans a single screen line", ->
+      describe "when a newline is inserted", ->
         it "indents cursor based on the indentation of previous buffer line", ->
           editor.setCursorBufferPosition([1, 30])
           editor.insertText("\n")
           expect(editor.buffer.lineForRow(2)).toEqual("    ")
 
+      describe "when a newline is inserted following a fold placeholder", ->
+        it "indents cursor based on the indentation of previous buffer line", ->
+          editor.createFold([[1, 10], [1, 30]])
+          editor.setCursorBufferPosition([1, 30])
+          editor.insertText("\n")
+          expect(editor.buffer.lineForRow(2)).toEqual("    ")
+
+      describe "when text beginning with a newline is inserted", ->
         it "indents cursor based on the indentation of previous buffer line", ->
           editor.setCursorBufferPosition([4, 29])
           editor.insertText("\nvar thisIsCool")
@@ -557,7 +565,7 @@ describe "Editor", ->
           expect(editor.buffer.lineForRow(2)).toEqual("  }")
           expect(editor.getCursorBufferPosition().column).toBe 3
 
-    describe "when line spans multiple screen lines", ->
+    describe "when editing a line that spans multiple screen lines", ->
       beforeEach ->
         editor.attachToDom()
         editor.setSoftWrap(true)
diff --git a/src/atom/screen-line-fragment.coffee b/src/atom/screen-line-fragment.coffee
index 5c487f33a..1889e3d60 100644
--- a/src/atom/screen-line-fragment.coffee
+++ b/src/atom/screen-line-fragment.coffee
@@ -4,6 +4,7 @@ Point = require 'point'
 module.exports =
 class ScreenLineFragment
   isAtomic: false
+  state: null
 
   constructor: (@tokens, @text, screenDelta, bufferDelta, extraFields) ->
     @screenDelta = Point.fromObject(screenDelta)
@@ -29,8 +30,8 @@ class ScreenLineFragment
     [leftScreenDelta, rightScreenDelta] = @screenDelta.splitAt(column)
     [leftBufferDelta, rightBufferDelta] = @bufferDelta.splitAt(column)
 
-    leftFragment = new ScreenLineFragment(leftTokens, leftText, leftScreenDelta, leftBufferDelta)
-    rightFragment = new ScreenLineFragment(rightTokens, rightText, rightScreenDelta, rightBufferDelta)
+    leftFragment = new ScreenLineFragment(leftTokens, leftText, leftScreenDelta, leftBufferDelta, {@state})
+    rightFragment = new ScreenLineFragment(rightTokens, rightText, rightScreenDelta, rightBufferDelta, {@state})
     [leftFragment, rightFragment]
 
   splitTokenAt: (token, splitIndex) ->
@@ -44,7 +45,7 @@ class ScreenLineFragment
     text = @text + other.text
     screenDelta = @screenDelta.add(other.screenDelta)
     bufferDelta = @bufferDelta.add(other.bufferDelta)
-    new ScreenLineFragment(tokens, text, screenDelta, bufferDelta)
+    new ScreenLineFragment(tokens, text, screenDelta, bufferDelta, {state: other.state})
 
   isSoftWrapped: ->
     @screenDelta.row == 1 and @bufferDelta.row == 0