diff --git a/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/expression/FirJavaGenericVarianceViolationTypeChecker.kt b/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/expression/FirJavaGenericVarianceViolationTypeChecker.kt
index e634f4f720c..e7e2fdde30f 100644
--- a/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/expression/FirJavaGenericVarianceViolationTypeChecker.kt
+++ b/compiler/fir/checkers/checkers.jvm/src/org/jetbrains/kotlin/fir/analysis/jvm/checkers/expression/FirJavaGenericVarianceViolationTypeChecker.kt
@@ -121,7 +121,7 @@ object FirJavaGenericVarianceViolationTypeChecker : FirFunctionCallChecker() {
                     lowerBoundWithoutCapturing.withNullability(ConeNullability.NULLABLE, typeCtx)
                 )
             ) {
-                reporter.reportOn(arg.source, FirErrors.JAVA_TYPE_MISMATCH, argType, expectedType, context)
+                reporter.reportOn(arg.source, FirErrors.JAVA_TYPE_MISMATCH, expectedType, argType, context)
             }
         }
     }
@@ -161,9 +161,10 @@ object FirJavaGenericVarianceViolationTypeChecker : FirFunctionCallChecker() {
     private fun ConeTypeProjection.removeOutProjection(positive: Boolean): ConeTypeProjection {
         return when (this) {
             is ConeKotlinTypeProjectionOut -> if (positive) type else this
-            is ConeKotlinType -> this.removeOutProjection(true)
-            is ConeKotlinTypeConflictingProjection -> ConeKotlinTypeConflictingProjection(type.removeOutProjection(true))
             is ConeKotlinTypeProjectionIn -> ConeKotlinTypeProjectionIn(type.removeOutProjection(!positive))
+            // Don't remove nested projections for types at invariant position.
+            is ConeKotlinTypeConflictingProjection,
+            is ConeKotlinType,
             is ConeStarProjection -> this
         }
     }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.kt b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.kt
index 6ec3dfb6a6a..b25b4a04cfb 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.kt
+++ b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.kt
@@ -8,11 +8,30 @@ import java.util.*;
 public class A {
     void foo(List<Object> x) {}
     <T> void foo2(List<T> x) {}
+    void foo3(Collection<? extends Object> x) {}
+
     List<? extends Number> bar() {}
+    List<List<? extends Number>> bar2() {}
+}
+
+// FILE: B.java
+
+import java.util.*;
+
+public class B<T> {
+    public B(Collection<T> c) {
+
+    }
 }
 // FILE: main.kt
 
 fun main(a: A) {
     a.foo(<!JAVA_TYPE_MISMATCH!>a.bar()<!>)
     a.foo2(a.bar())
+    a.foo3(a.bar())
+    B(a.bar())
+    a.foo(<!JAVA_TYPE_MISMATCH!>a.bar2()<!>)
+    a.foo2(a.bar2())
+    a.foo3(a.bar2())
+    B(a.bar2())
 }
diff --git a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.txt b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.txt
index 84b399a84d0..e9b2b1c2b43 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/javaOutProjection.txt
@@ -5,9 +5,19 @@ public fun main(/*0*/ a: A): kotlin.Unit
 public open class A {
     public constructor A()
     public/*package*/ open fun bar(): (kotlin.collections.MutableList<out kotlin.Number!>..kotlin.collections.List<kotlin.Number!>?)
+    public/*package*/ open fun bar2(): kotlin.collections.(Mutable)List<(kotlin.collections.MutableList<out kotlin.Number!>..kotlin.collections.List<kotlin.Number!>?)>!
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public/*package*/ open fun foo(/*0*/ x: kotlin.collections.(Mutable)List<kotlin.Any!>!): kotlin.Unit
     public/*package*/ open fun </*0*/ T : kotlin.Any!> foo2(/*0*/ x: kotlin.collections.(Mutable)List<T!>!): kotlin.Unit
+    public/*package*/ open fun foo3(/*0*/ x: (kotlin.collections.MutableCollection<out kotlin.Any!>..kotlin.collections.Collection<kotlin.Any!>?)): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
+
+public open class B</*0*/ T : kotlin.Any!> {
+    public constructor B</*0*/ T : kotlin.Any!>(/*0*/ c: kotlin.collections.(Mutable)Collection<T!>!)
+    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/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.kt b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.kt
index 5e752bd438c..2eaf3bcb664 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.kt
+++ b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.kt
@@ -8,14 +8,35 @@ import java.util.*;
 public class A {
     void foo(List<Object> x) {}
     <T> void foo2(List<T> x) {}
+    void foo3(Collection<? extends Object> x) {}
+}
+
+// FILE: B.java
+
+import java.util.*;
+
+public class B<T> {
+    public B(Collection<T> c) {
+
+    }
 }
 // FILE: main.kt
 
 fun main(a: A) {
     a.foo(<!JAVA_TYPE_MISMATCH!>bar()<!>)
     a.foo2(bar())
+    a.foo3(bar())
+    B(bar())
+    a.foo(<!JAVA_TYPE_MISMATCH!>bar2()<!>)
+    a.foo2(bar2())
+    a.foo3(bar2())
+    B(bar2())
 }
 
 fun bar() : MutableList<out Number> {
     TODO()
 }
+
+fun bar2() : MutableList<MutableList<out Number>> {
+    TODO()
+}
diff --git a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.txt b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.txt
index 9c9c7b034b7..3a83dba617e 100644
--- a/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.txt
+++ b/compiler/testData/diagnostics/tests/platformTypes/genericVarianceViolation/kotlinOutProjection.txt
@@ -1,6 +1,7 @@
 package
 
 public fun bar(): kotlin.collections.MutableList<out kotlin.Number>
+public fun bar2(): kotlin.collections.MutableList<kotlin.collections.MutableList<out kotlin.Number>>
 public fun main(/*0*/ a: A): kotlin.Unit
 
 public open class A {
@@ -8,6 +9,15 @@ public open class A {
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
     public/*package*/ open fun foo(/*0*/ x: kotlin.collections.(Mutable)List<kotlin.Any!>!): kotlin.Unit
     public/*package*/ open fun </*0*/ T : kotlin.Any!> foo2(/*0*/ x: kotlin.collections.(Mutable)List<T!>!): kotlin.Unit
+    public/*package*/ open fun foo3(/*0*/ x: (kotlin.collections.MutableCollection<out kotlin.Any!>..kotlin.collections.Collection<kotlin.Any!>?)): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
 }
+
+public open class B</*0*/ T : kotlin.Any!> {
+    public constructor B</*0*/ T : kotlin.Any!>(/*0*/ c: kotlin.collections.(Mutable)Collection<T!>!)
+    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
+}
+