diff --git a/lisp/org-babel-ref.el b/lisp/org-babel-ref.el
index 6ec362c1e..182934f72 100644
--- a/lisp/org-babel-ref.el
+++ b/lisp/org-babel-ref.el
@@ -156,8 +156,8 @@ return nil."
         (when (= depth 0)
           (setq return (reverse (cons (substring buffer 0 -1) return)))
           (setq buffer "")))
-       ((string= holder "(") (setq depth (+ 1 depth)))
-       ((string= holder ")") (setq depth (- 1 depth)))))
+       ((string= holder "(") (setq depth (+ depth 1)))
+       ((string= holder ")") (setq depth (- depth 1)))))
     (reverse (cons buffer return))))
 
 (defun org-babel-ref-at-ref-p ()
diff --git a/org-babel.org b/org-babel.org
index 7d69336ba..2b0f2bbd1 100644
--- a/org-babel.org
+++ b/org-babel.org
@@ -2798,13 +2798,27 @@ arg
 
 : 105
 
-**** TODO Nesting problem II
+**** DONE Nesting problem II
      This generates parsing errors
 #+srcname: deeply-nested-args-bug-II-1()
-#+begin_src python :var arg=adder(a=adder(a=one(),b=adder(a=1,b=4)))
+#+begin_src python :var arg=adder(a=adder(a=one(),b=adder(a=2,b=4)))
 arg
 #+end_src
 
+#+resname: deeply-nested-args-bug-II-1
+
+: 106
+
+#+srcname: deeply-nested-args-bug-II-original()
+#+begin_src python :var arg=adder(a=adder(a=one(),b=one()),b=adder(a=one(),b=adder(a=1,b=4)))
+arg
+#+end_src
+
+#+resname: deeply-nested-args-bug-II-original
+: 8
+
+
+
 
 **** DONE Why does this give 8?
      It was picking up the wrong definition of adder