diff --git a/modules/ve2/dm/ve.dm.Transaction.js b/modules/ve2/dm/ve.dm.Transaction.js
index c2a49ed07d..a813efc272 100644
--- a/modules/ve2/dm/ve.dm.Transaction.js
+++ b/modules/ve2/dm/ve.dm.Transaction.js
@@ -72,13 +72,23 @@ ve.dm.Transaction.newFromRemoval = function( doc, range ) {
 		return tx;
 	}
 	// Select nodes and validate selection
-	var selection = doc.selectNodes( range, 'leaves' );
+	var selection = doc.selectNodes( range, 'leaves' ),
+		nodeRange;
 	if ( selection.length === 0 ) {
 		// Empty selection? Something is wrong!
 		throw 'Invalid range, can not remove from ' + range.start + ' to ' + range.end;
 	}
 	// Decide whether to merge or strip
 	if ( selection[0].node.canBeMergedWith( selection[selection.length - 1].node ) ) {
+		// If only one node was selected, ignore anything past this node
+		if ( selection.length === 1 ) {
+			// Include the parent's wrapping (if any - there should always be, but let's be safe)
+			wrapping = selection[0].node.getParent().isWrapped() ? 1 : 0;
+			// Only reduces the range to cover the selected node if it's shorter
+			range.start = Math.max( range.start, selection[0].nodeRange.start - wrapping );
+			// Only reduces the range to cover the selected node if it's shorter
+			range.end = Math.min( range.end, selection[0].nodeRange.end + wrapping );
+		}
 		// Retain to the start of the range
 		if ( range.start > 0 ) {
 			tx.pushRetain( range.start );
@@ -90,8 +100,7 @@ ve.dm.Transaction.newFromRemoval = function( doc, range ) {
 			tx.pushRetain( data.length - range.end );
 		}
 	} else {
-		var offset = 0,
-			nodeRange;
+		var offset = 0;
 		for ( var i = 0; i < selection.length; i++ ) {
 			nodeRange = selection[i].nodeRange;
 			// Retain up to where the next removal starts
diff --git a/tests/ve2/dm/ve.dm.Node.test.js b/tests/ve2/dm/ve.dm.Node.test.js
index a2843afdca..4d48955177 100644
--- a/tests/ve2/dm/ve.dm.Node.test.js
+++ b/tests/ve2/dm/ve.dm.Node.test.js
@@ -96,3 +96,14 @@ test( 'detach', 2, function() {
 	strictEqual( node1.getRoot(), node1 );
 } );
 
+test( 'canBeMergedWith', 4, function() {
+	var node1 = new ve.dm.LeafNodeStub(),
+		node2 = new ve.dm.BranchNodeStub( [node1] ),
+		node3 = new ve.dm.BranchNodeStub( [node2] ),
+		node4 = new ve.dm.LeafNodeStub(),
+		node5 = new ve.dm.BranchNodeStub( [node4] );
+	strictEqual( node3.canBeMergedWith( node5 ), true, 'same level, same type' );
+	strictEqual( node2.canBeMergedWith( node5 ), false, 'different level, same type' );
+	strictEqual( node2.canBeMergedWith( node1 ), false, 'different level, different type' );
+	strictEqual( node2.canBeMergedWith( node4 ), false, 'same level, different type' );
+} );
diff --git a/tests/ve2/dm/ve.dm.Transaction.test.js b/tests/ve2/dm/ve.dm.Transaction.test.js
index 83ff99197a..e032c1a36a 100644
--- a/tests/ve2/dm/ve.dm.Transaction.test.js
+++ b/tests/ve2/dm/ve.dm.Transaction.test.js
@@ -150,6 +150,23 @@ test( 'newFromRemoval', function() {
 				{ 'type': 'retain', 'length': 19 }
 			]
 		},
+		'extra openings': {
+			'args': [doc, new ve.Range( 0, 7 )],
+			'ops': [
+				{
+					'type': 'replace',
+					'remove': [
+						{ 'type': 'heading', 'attributes': { 'level': 1 } },
+						'a',
+						['b', { '{"type":"textStyle/bold"}': { 'type': 'textStyle/bold' } }],
+						['c', { '{"type":"textStyle/italic"}': { 'type': 'textStyle/italic' } }],
+						{ 'type': '/heading' }
+					],
+					'insert': []
+				},
+				{ 'type': 'retain', 'length': 54 }
+			]
+		},
 		'last element': {
 			'args': [doc, new ve.Range( 56, 59 )],
 			'ops': [
@@ -161,6 +178,18 @@ test( 'newFromRemoval', function() {
 				}
 			]
 		},
+		'extra closings': {
+			'args': [doc, new ve.Range( 30, 37 )],
+			'ops': [
+				{ 'type': 'retain', 'length': 36 },
+				{
+					'type': 'replace',
+					'remove': ['h'],
+					'insert': []
+				},
+				{ 'type': 'retain', 'length': 22 }
+			]
+		},
 		'merge last two elements': {
 			'args': [doc, new ve.Range( 55, 57 )],
 			'ops': [