diff --git a/spec/display-buffer-spec.coffee b/spec/display-buffer-spec.coffee
index 66dc070d6..4b6219faa 100644
--- a/spec/display-buffer-spec.coffee
+++ b/spec/display-buffer-spec.coffee
@@ -622,10 +622,10 @@ describe "DisplayBuffer", ->
         expect(displayBuffer.clipScreenPosition([3, 58])).toEqual [3, 50]
         expect(displayBuffer.clipScreenPosition([3, 1000])).toEqual [3, 50]
 
-      it "clips positions inside a phantom token to the beginning of the line", ->
-        expect(displayBuffer.clipScreenPosition([4, 0])).toEqual [4, 4]
-        expect(displayBuffer.clipScreenPosition([4, 1])).toEqual [4, 4]
-        expect(displayBuffer.clipScreenPosition([4, 3])).toEqual [4, 4]
+      it "wraps positions at the end of previous soft-wrapped line", ->
+        expect(displayBuffer.clipScreenPosition([4, 0])).toEqual [3, 50]
+        expect(displayBuffer.clipScreenPosition([4, 1])).toEqual [3, 50]
+        expect(displayBuffer.clipScreenPosition([4, 3])).toEqual [3, 50]
 
     describe "when wrapAtSoftNewlines is true", ->
       it "wraps positions at the end of soft-wrapped lines to the next screen line", ->
@@ -634,10 +634,10 @@ describe "DisplayBuffer", ->
         expect(displayBuffer.clipScreenPosition([3, 58], wrapAtSoftNewlines: true)).toEqual [4, 4]
         expect(displayBuffer.clipScreenPosition([3, 1000], wrapAtSoftNewlines: true)).toEqual [4, 4]
 
-      it "wraps positions inside a phantom token to the previous line", ->
-        expect(displayBuffer.clipScreenPosition([4, 0], wrapAtSoftNewlines: true)).toEqual [3, 50]
-        expect(displayBuffer.clipScreenPosition([4, 1], wrapAtSoftNewlines: true)).toEqual [3, 50]
-        expect(displayBuffer.clipScreenPosition([4, 3], wrapAtSoftNewlines: true)).toEqual [3, 50]
+      it "clips positions to the beginning of the line", ->
+        expect(displayBuffer.clipScreenPosition([4, 0], wrapAtSoftNewlines: true)).toEqual [4, 4]
+        expect(displayBuffer.clipScreenPosition([4, 1], wrapAtSoftNewlines: true)).toEqual [4, 4]
+        expect(displayBuffer.clipScreenPosition([4, 3], wrapAtSoftNewlines: true)).toEqual [4, 4]
 
     describe "when skipAtomicTokens is false (the default)", ->
       it "clips screen positions in the middle of atomic tab characters to the beginning of the character", ->
diff --git a/spec/text-editor-spec.coffee b/spec/text-editor-spec.coffee
index f45f3063f..028ad8677 100644
--- a/spec/text-editor-spec.coffee
+++ b/spec/text-editor-spec.coffee
@@ -334,6 +334,17 @@ describe "TextEditor", ->
         expect(editor.getCursors()).toEqual [cursor1]
         expect(cursor1.getBufferPosition()).toEqual [0,0]
 
+      describe "when the cursor was moved down from the beginning of an indented soft-wrapped line", ->
+        it "moves to the beginning of the previous line", ->
+          editor.setSoftWrapped(true)
+          editor.setEditorWidthInChars(50)
+
+          editor.setCursorScreenPosition([3, 0])
+          editor.moveDown()
+          editor.moveDown()
+          editor.moveUp()
+          expect(editor.getCursorScreenPosition()).toEqual [4, 4]
+
     describe ".moveDown()", ->
       it "moves the cursor down", ->
         editor.setCursorScreenPosition([2, 2])
@@ -375,6 +386,16 @@ describe "TextEditor", ->
           editor.moveUp()
           expect(editor.getCursorScreenPosition().column).toBe 0
 
+      describe "when the cursor is at the beginning of an indented soft-wrapped line", ->
+        it "moves to the beginning of the line's continuation on the next screen row", ->
+          editor.setSoftWrapped(true)
+          editor.setEditorWidthInChars(50)
+
+          editor.setCursorScreenPosition([3, 0])
+          editor.moveDown()
+          expect(editor.getCursorScreenPosition()).toEqual [4, 4]
+
+
       describe "when there is a selection", ->
         beforeEach ->
           editor.setSelectedBufferRange([[4, 9],[5, 10]])
diff --git a/src/cursor.coffee b/src/cursor.coffee
index 589dfca08..ee7aee5a4 100644
--- a/src/cursor.coffee
+++ b/src/cursor.coffee
@@ -271,7 +271,7 @@ class Cursor extends Model
       { row, column } = @getScreenPosition()
 
     column = @goalColumn if @goalColumn?
-    @setScreenPosition({row: row - rowCount, column: column})
+    @setScreenPosition({row: row - rowCount, column: column}, wrapAtSoftNewlines: true)
     @goalColumn = column
 
   # Public: Moves the cursor down one screen row.
@@ -288,7 +288,7 @@ class Cursor extends Model
       { row, column } = @getScreenPosition()
 
     column = @goalColumn if @goalColumn?
-    @setScreenPosition({row: row + rowCount, column: column})
+    @setScreenPosition({row: row + rowCount, column: column}, wrapAtSoftNewlines: true)
     @goalColumn = column
 
   # Public: Moves the cursor left one screen column.
@@ -304,14 +304,13 @@ class Cursor extends Model
     else
       {row, column} = @getScreenPosition()
 
-      originalRow = row
       while columnCount > column and row > 0
         columnCount -= column
         column = @editor.lineTextForScreenRow(--row).length
         columnCount-- # subtract 1 for the row move
 
       column = column - columnCount
-      @setScreenPosition({row, column}, wrapAtSoftNewlines: originalRow == row)
+      @setScreenPosition({row, column})
 
   # Public: Moves the cursor right one screen column.
   #
diff --git a/src/display-buffer.coffee b/src/display-buffer.coffee
index 053863472..f5b6145a0 100644
--- a/src/display-buffer.coffee
+++ b/src/display-buffer.coffee
@@ -846,10 +846,10 @@ class DisplayBuffer extends Model
         column = screenLine.clipScreenColumn(maxScreenColumn - 1)
     else if screenLine.isColumnInsidePhantomToken(column)
       if wrapAtSoftNewlines
+        column = screenLine.clipScreenColumn(0)
+      else
         row--
         column = @screenLines[row].getMaxScreenColumn() - 1
-      else
-        column = screenLine.clipScreenColumn(0)
     else if wrapBeyondNewlines and column > maxScreenColumn and row < @getLastRow()
       row++
       column = 0