diff --git a/plugin/UltiSnips.vim b/plugin/UltiSnips.vim
index 2f3af96..90ed65c 100644
--- a/plugin/UltiSnips.vim
+++ b/plugin/UltiSnips.vim
@@ -9,16 +9,8 @@ function! UltiSnips_ExpandSnippet()
             let SuperTabKey = "\<c-p>"
         endif
     endif
-    
-    if pumvisible() " Update snippet if completion is used, or deal with supertab
-        if exists('SuperTabKey')
-            call feedkeys(SuperTabKey) | return ''
-        endif
-        call feedkeys("\<esc>a", 'n') " Close completion menu
-        call feedkeys("\<tab>") | return ''
-    endif
-
-   " Now, really expand something
+   
+    " Now, really expand something
     py << EOF
 if not UltiSnips_Manager.try_expand():
    vim.command("""if exists('SuperTabKey')
diff --git a/plugin/UltiSnips/__init__.py b/plugin/UltiSnips/__init__.py
index d5846eb..d2dcc2e 100644
--- a/plugin/UltiSnips/__init__.py
+++ b/plugin/UltiSnips/__init__.py
@@ -50,6 +50,7 @@ class VimState(object):
         self._dlines = None
         self._cols = None
         self._dcols = None
+        self._cline = None
         self._lline = None
         self._text_changed = None
 
@@ -83,8 +84,9 @@ class VimState(object):
         # If the length didn't change but we moved a column, check if
         # the char under the cursor has changed (might be one char tab).
         elif self.moved.col == 1:
-            self._text_changed = self._lline != vim.current.buffer[line]
-        self._lline = vim.current.buffer[line]
+            self._text_changed = self._cline != vim.current.buffer[line]
+        self._lline = self._cline
+        self._cline = vim.current.buffer[line]
 
     def select_span(self, r):
         delta = r.end - r.start
@@ -144,6 +146,10 @@ class VimState(object):
         return bool(self._moved.line or self._moved.col)
     has_moved = property(has_moved)
 
+    def last_line(self):
+        return self._lline
+    last_line = property(last_line)
+
 class SnippetManager(object):
     def __init__(self):
         self.reset()
@@ -188,7 +194,6 @@ class SnippetManager(object):
         if "all" not in self._snippets:
             self._load_snippets_for("all")
 
-        self._ctab = None
         self._expect_move_wo_change = False
 
         lineno,col = vim.current.window.cursor
@@ -275,12 +280,26 @@ class SnippetManager(object):
         if self._vstate.buf_changed and self._ctab:
             # Detect a carriage return
             if self._vstate.moved.col <= 0 and self._vstate.moved.line == 1:
+                # Multiple things might have happened: either the user entered
+                # a newline character or pasted some text which means we have
+                # to copy everything he entered on the last line and keep the
+                # indent vim chose for this line.
                 lline = vim.current.buffer[self._vstate.ppos.line]
-                pentered = lline[self._vstate.ppos.col:]
-                
-                this_entered = vim.current.line[:self._vstate.pos.col]
 
-                self._chars_entered(pentered + '\n' + this_entered)
+                # Another thing that might have happened is that a word
+                # wrapped, in this case the last line is shortened and we must
+                # delete what vim deleted there
+                line_was_shortened = len(self._vstate.last_line) > len(lline)
+                user_didnt_enter_newline = len(lline) != self._vstate.ppos.col
+                if line_was_shortened and user_didnt_enter_newline:
+                    cline = vim.current.buffer[self._vstate.pos.line]
+                    self._backspace(len(self._vstate.last_line)-len(lline))
+                    self._chars_entered('\n' + cline, 1)
+                else:
+                    pentered = lline[self._vstate.ppos.col:]
+                    this_entered = vim.current.line[:self._vstate.pos.col]
+
+                    self._chars_entered(pentered + '\n' + this_entered)
             elif self._vstate.moved.line == 0 and self._vstate.moved.col<0:
                 # Some deleting was going on
                 self._backspace(-self._vstate.moved.col)
@@ -305,7 +324,7 @@ class SnippetManager(object):
     # Private/Protect Functions Below #
     ###################################
     # Input Handling
-    def _chars_entered(self, chars):
+    def _chars_entered(self, chars, del_more_lines = 0):
         if (self._span_selected is not None):
             self._ctab.current_text = chars
 
@@ -313,10 +332,10 @@ class SnippetManager(object):
                     self._span_selected.end.line
             self._span_selected = None
 
-            self._update_vim_buffer(moved)
+            self._update_vim_buffer(moved + del_more_lines)
         else:
             self._ctab.current_text += chars
-            self._update_vim_buffer()
+            self._update_vim_buffer(del_more_lines)
 
 
     def _backspace(self, count):
diff --git a/test.py b/test.py
index 2d4ae44..b5d838a 100755
--- a/test.py
+++ b/test.py
@@ -170,6 +170,16 @@ class MultilineExpandTestTyping_ExceptCorrectResult(_VimTest):
     wanted = "Wie Hallo Welt!\nUnd Wie gehtsHuiui! gehts"
     keys = "Wie hallo gehts" + ESC + "bhi" + EX + "Huiui!"
 
+class MultilineExpandWithFormatoptionsOn_ExceptCorrectResult(_VimTest):
+    snippets = ("test", "${1:longer expand}\n$0")
+    keys = "test" + EX + "This is a longer text that should wrap"
+    wanted = "This is a longer\ntext that should\nwrap\n"
+    def _options_on(self):
+        self.send(":set tw=20\n")
+    def _options_off(self):
+        self.send(":set tw=0\n")
+
+
 ############
 # TabStops #
 ############