diff --git a/spec/app/edit-session-spec.coffee b/spec/app/edit-session-spec.coffee
index 6d5e6a6f2..ff711b9e9 100644
--- a/spec/app/edit-session-spec.coffee
+++ b/spec/app/edit-session-spec.coffee
@@ -742,6 +742,13 @@ describe "EditSession", ->
 
               describe "when the cursor's current column is greater than the suggested indent level", ->
                 it "preserves the current indent level, indenting all lines relative to it", ->
+                  editSession.insertText('\n      ')
+                  editSession.insertText(text, normalizeIndent: true)
+
+                  expect(editSession.lineForBufferRow(3)).toBe "      while (true) {"
+                  expect(editSession.lineForBufferRow(4)).toBe "        foo();"
+                  expect(editSession.lineForBufferRow(5)).toBe "      }"
+                  expect(editSession.lineForBufferRow(6)).toBe "    bar();"
 
             describe "if auto-indent is disabled", ->
               it "always normalizes indented lines to the cursor's current indentation level", ->
diff --git a/src/app/selection.coffee b/src/app/selection.coffee
index 01d924c16..b031de7ab 100644
--- a/src/app/selection.coffee
+++ b/src/app/selection.coffee
@@ -168,11 +168,11 @@ class Selection
     normalizedLines.join('\n')
 
   adjustIndentationForLine: (line, delta) ->
-    indentText = new Array(Math.abs(delta + 1)).join(' ')
+    indentText = new Array(Math.abs(delta) + 1).join(' ')
     if delta > 0
       indentText + line
     else if delta < 0
-      line.replace(indentText, '')
+      line.replace(new RegExp("^#{indentText}"), '')
     else
       line