diff --git a/test/compress/issue-1423.js b/test/compress/issue-1423.js
new file mode 100644
index 00000000..731ebba8
--- /dev/null
+++ b/test/compress/issue-1423.js
@@ -0,0 +1,122 @@
+level_one: {
+    options = {
+        keep_fnames: true
+    }
+    mangle = {
+        keep_fnames: true
+    }
+    input: {
+        function f(x) {
+            return function() {
+                function n(a) {
+                    return a * a;
+                }
+                return x(n);
+            };
+        }
+    }
+    expect: {
+        function f(r) {
+            return function() {
+                function n(n) {
+                    return n * n;
+                }
+                return r(n);
+            };
+        }
+    }
+}
+
+level_two: {
+    options = {
+        keep_fnames: true
+    }
+    mangle = {
+        keep_fnames: true
+    }
+    input: {
+        function f(x) {
+            return function() {
+                function r(a) {
+                    return a * a;
+                }
+                return function() {
+                    function n(a) {
+                        return a * a;
+                    }
+                    return x(n);
+                };
+            };
+        }
+    }
+    expect: {
+        function f(t) {
+            return function() {
+                function r(n) {
+                    return n * n;
+                }
+                return function() {
+                    function n(n) {
+                        return n * n;
+                    }
+                    return t(n);
+                };
+            };
+        }
+    }
+}
+
+level_three: {
+    options = {
+        keep_fnames: true
+    }
+    mangle = {
+        keep_fnames: true
+    }
+    input: {
+        function f(x) {
+            return function() {
+                function r(a) {
+                    return a * a;
+                }
+                return [
+                    function() {
+                        function t(a) {
+                            return a * a;
+                        }
+                        return t;
+                    },
+                    function() {
+                        function n(a) {
+                            return a * a;
+                        }
+                        return x(n);
+                    }
+                ];
+            };
+        }
+    }
+    expect: {
+        function f(t) {
+            return function() {
+                function r(n) {
+                    return n * n;
+                }
+                return [
+                    function() {
+                        function t(n) {
+                            return n * n;
+                        }
+                        return t;
+                    },
+                    function() {
+                        function n(n) {
+                            return n * n;
+                        }
+                        return t(n);
+                    }
+                ];
+            };
+        }
+    }
+}