diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BindingContext.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BindingContext.java
index 5d8f5766ea0..a71c81a0015 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BindingContext.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BindingContext.java
@@ -116,8 +116,6 @@ public interface BindingContext {
     WritableSlice<JetExpression, Collection<? extends DeclarationDescriptor>> AMBIGUOUS_REFERENCE_TARGET =
             new BasicWritableSlice<JetExpression, Collection<? extends DeclarationDescriptor>>(DO_NOTHING);
 
-    WritableSlice<JetExpression, DelegatingBindingTrace> TRACE_DELTAS_CACHE = Slices.createSimpleSlice();
-
     WritableSlice<JetExpression, ResolvedCall<FunctionDescriptor>> LOOP_RANGE_ITERATOR_RESOLVED_CALL = Slices.createSimpleSlice();
 
     WritableSlice<JetExpression, ResolvedCall<FunctionDescriptor>> LOOP_RANGE_HAS_NEXT_RESOLVED_CALL = Slices.createSimpleSlice();
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/BasicExpressionTypingVisitor.java b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/BasicExpressionTypingVisitor.java
index c49994237ac..ae99ad5c94c 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/BasicExpressionTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/types/expressions/BasicExpressionTypingVisitor.java
@@ -608,12 +608,6 @@ public class BasicExpressionTypingVisitor extends ExpressionTypingVisitor {
 
     @Override
     public JetTypeInfo visitObjectLiteralExpression(@NotNull final JetObjectLiteralExpression expression, final ExpressionTypingContext context) {
-        DelegatingBindingTrace delegatingBindingTrace = context.trace.get(TRACE_DELTAS_CACHE, expression.getObjectDeclaration());
-        if (delegatingBindingTrace != null) {
-            delegatingBindingTrace.addAllMyDataTo(context.trace);
-            JetType type = context.trace.getType(expression);
-            return TypeInfoFactoryPackage.createCheckedTypeInfo(type, context, expression);
-        }
         final JetType[] result = new JetType[1];
         final TemporaryBindingTrace temporaryTrace = TemporaryBindingTrace.create(context.trace,
                                                                                   "trace to resolve object literal expression", expression);
@@ -648,11 +642,6 @@ public class BasicExpressionTypingVisitor extends ExpressionTypingVisitor {
                                                                 expression.getObjectDeclaration(),
                                                                 components.additionalCheckerProvider,
                                                                 components.dynamicTypesSettings);
-
-        DelegatingBindingTrace cloneDelta = new DelegatingBindingTrace(
-                new BindingTraceContext().getBindingContext(), "cached delta trace for object literal expression resolve", expression);
-        temporaryTrace.addAllMyDataTo(cloneDelta);
-        context.trace.record(TRACE_DELTAS_CACHE, expression.getObjectDeclaration(), cloneDelta);
         temporaryTrace.commit();
         return TypeInfoFactoryPackage.createCheckedTypeInfo(result[0], context, expression);
     }
diff --git a/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.kt b/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.kt
new file mode 100644
index 00000000000..5013c93f0a0
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.kt
@@ -0,0 +1,38 @@
+// !DIAGNOSTICS: -PARAMETER_NAME_CHANGED_ON_OVERRIDE
+
+//If this test hangs, it means something is broken.
+object A {
+    val iii = 42
+}
+
+//inappropriate but participating in resolve functions
+fun foo(s: String, a: Any) = s + a
+
+fun foo(a: Any, s: String) = s + a
+fun foo(i: Int, j: Int) = i + j
+fun foo(a: Any, i: Int) = "$a$i"
+fun foo(f: (Int) -> Int, i: Int) = f(i)
+fun foo(f: (String) -> Int, s: String) = f(s)
+fun foo(f: (Any) -> Int, a: Any) = f(a)
+fun foo(s: String, f: (String) -> Int) = f(s)
+fun foo(a: Any, f: (Any) -> Int) = f(a)
+//appropriate function
+fun foo(i: Int, f: (Int) -> Int) = f(i)
+
+fun test() {
+    foo(1, object : (Int) -> Int {
+        override fun invoke(x1: Int) = foo(
+                2, object : (Int) -> Int {
+            override fun invoke(x2: Int) = foo(
+                    3, object : (Int) -> Int {
+                override fun invoke(x3: Int): Int = foo(
+                        4, object : (Int) -> Int {
+                    override fun invoke(x4: Int): Int = foo(
+                            5, object : (Int) -> Int {
+                        override fun invoke(x5: Int): Int = x1 + x2 + x3 + x4 + x5 + A.iii
+                    })
+                })
+            })
+        })
+    })
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.txt b/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.txt
new file mode 100644
index 00000000000..cc8daa98075
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.txt
@@ -0,0 +1,21 @@
+package
+
+internal fun foo(/*0*/ f: (kotlin.Any) -> kotlin.Int, /*1*/ a: kotlin.Any): kotlin.Int
+internal fun foo(/*0*/ f: (kotlin.Int) -> kotlin.Int, /*1*/ i: kotlin.Int): kotlin.Int
+internal fun foo(/*0*/ f: (kotlin.String) -> kotlin.Int, /*1*/ s: kotlin.String): kotlin.Int
+internal fun foo(/*0*/ a: kotlin.Any, /*1*/ f: (kotlin.Any) -> kotlin.Int): kotlin.Int
+internal fun foo(/*0*/ a: kotlin.Any, /*1*/ i: kotlin.Int): kotlin.String
+internal fun foo(/*0*/ a: kotlin.Any, /*1*/ s: kotlin.String): kotlin.String
+internal fun foo(/*0*/ i: kotlin.Int, /*1*/ f: (kotlin.Int) -> kotlin.Int): kotlin.Int
+internal fun foo(/*0*/ i: kotlin.Int, /*1*/ j: kotlin.Int): kotlin.Int
+internal fun foo(/*0*/ s: kotlin.String, /*1*/ f: (kotlin.String) -> kotlin.Int): kotlin.Int
+internal fun foo(/*0*/ s: kotlin.String, /*1*/ a: kotlin.Any): kotlin.String
+internal fun test(): kotlin.Unit
+
+internal object A {
+    private constructor A()
+    internal final val iii: kotlin.Int = 42
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index e225b3f4b1f..0b3b15db332 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -10014,6 +10014,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("objectLiteralAsArgument.kt")
+            public void testObjectLiteralAsArgument() throws Exception {
+                String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/resolve/objectLiteralAsArgument.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("resolveWithFunctionLiteralWithId.kt")
             public void testResolveWithFunctionLiteralWithId() throws Exception {
                 String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/resolve/resolveWithFunctionLiteralWithId.kt");