diff --git a/lib/Sema/CSDiag.cpp b/lib/Sema/CSDiag.cpp
index 00136b7d0b483..aabdb05839e1c 100644
--- a/lib/Sema/CSDiag.cpp
+++ b/lib/Sema/CSDiag.cpp
@@ -408,11 +408,9 @@ class FailureDiagnosis :public ASTVisitor<FailureDiagnosis, /*exprresult*/bool>{
     return e ? CS.getType(e) : Type();
   }
 
-  /// This is the same as typeCheckChildIndependently, but works on an arbitrary
-  /// subexpression of the current node because it handles ClosureExpr parents
-  /// of the specified node.
-  Expr *typeCheckArbitrarySubExprIndependently(Expr *subExpr,
-                                             TCCOptions options = TCCOptions());
+  /// Find a nearest declaration context which could be used
+  /// to type-check this sub-expression.
+  DeclContext *findDeclContext(Expr *subExpr) const;
 
   /// Special magic to handle inout exprs and tuples in argument lists.
   Expr *typeCheckArgumentChildIndependently(Expr *argExpr, Type argType,
@@ -1150,8 +1148,8 @@ bool FailureDiagnosis::diagnoseGeneralConversionFailure(Constraint *constraint){
     // constraint.
     if (CS.getContextualTypePurpose() != CTP_Unused)
       options |= TCC_ForceRecheck;
-      
-    auto sub = typeCheckArbitrarySubExprIndependently(anchor, options);
+
+    auto sub = typeCheckChildIndependently(anchor, options);
     if (!sub) return true;
     fromType = CS.getType(sub);
   }
@@ -1624,10 +1622,14 @@ Expr *FailureDiagnosis::typeCheckChildIndependently(
   if ((!convertType || options.contains(TCC_AllowUnresolvedTypeVariables)) &&
       allowFreeTypeVariables)
     TCEOptions |= TypeCheckExprFlags::AllowUnresolvedTypeVariables;
-  
-  auto resultTy = CS.TC.typeCheckExpression(
-      subExpr, CS.DC, TypeLoc::withoutLoc(convertType), convertTypePurpose,
-      TCEOptions, listener, &CS);
+
+  // When we're type checking a single-expression closure, we need to reset the
+  // DeclContext to this closure for the recursive type checking.  Otherwise,
+  // if there is a closure in the subexpression, we can violate invariants.
+  auto *DC = findDeclContext(subExpr);
+  auto resultTy =
+      CS.TC.typeCheckExpression(subExpr, DC, TypeLoc::withoutLoc(convertType),
+                                convertTypePurpose, TCEOptions, listener, &CS);
 
   CS.cacheExprTypes(subExpr);
 
@@ -1663,49 +1665,53 @@ Expr *FailureDiagnosis::typeCheckChildIndependently(
   return subExpr;
 }
 
-/// This is the same as typeCheckChildIndependently, but works on an arbitrary
-/// subexpression of the current node because it handles ClosureExpr parents
-/// of the specified node.
-Expr *FailureDiagnosis::
-typeCheckArbitrarySubExprIndependently(Expr *subExpr, TCCOptions options) {
-  if (subExpr == expr)
-    return typeCheckChildIndependently(subExpr, options);
-  
-  // Construct a parent map for the expr tree we're investigating.
-  auto parentMap = expr->getParentMap();
-  
-  ClosureExpr *NearestClosure = nullptr;
-  
-  // Walk the parents of the specified expression, handling any ClosureExprs.
-  for (Expr *node = parentMap[subExpr]; node; node = parentMap[node]) {
-    auto *CE = dyn_cast<ClosureExpr>(node);
-    if (!CE) continue;
-    
-    // Keep track of the innermost closure we see that we're jumping into.
-    if (!NearestClosure)
-      NearestClosure = CE;
-    
-    // If we have a ClosureExpr parent of the specified node, check to make sure
-    // none of its arguments are type variables.  If so, these type variables
-    // would be accessible to name lookup of the subexpression and may thus leak
-    // in.  Reset them to UnresolvedTypes for safe measures.
-    for (auto *param : *CE->getParameters()) {
-      if (param->hasValidSignature()) {
-        auto type = param->getType();
-        assert(!type->hasTypeVariable() && !type->hasError());
-        (void)type;
+DeclContext *FailureDiagnosis::findDeclContext(Expr *subExpr) const {
+  if (auto *closure =
+          dyn_cast<ClosureExpr>(subExpr->getSemanticsProvidingExpr()))
+    return closure->getParent();
+
+  struct DCFinder : public ASTWalker {
+    DeclContext *DC, *CurrDC;
+    Expr *SubExpr;
+
+    DCFinder(DeclContext *DC, Expr *expr) : DC(DC), CurrDC(DC), SubExpr(expr) {}
+
+    std::pair<bool, Expr *> walkToExprPre(Expr *E) override {
+      if (E == SubExpr) {
+        DC = CurrDC;
+        return {false, nullptr};
+      }
+
+      if (auto *closure = dyn_cast<ClosureExpr>(E)) {
+        CurrDC = closure;
+        // If we have a ClosureExpr parent of the specified node, check to make
+        // sure none of its arguments are type variables.  If so, these type
+        // variables would be accessible to name lookup of the subexpression and
+        // may thus leak in.  Reset them to UnresolvedTypes for safe measures.
+        assert(llvm::all_of(*closure->getParameters(), [](const ParamDecl *PD) {
+          if (PD->hasValidSignature()) {
+            auto paramTy = PD->getType();
+            return !(paramTy->hasTypeVariable() || paramTy->hasError());
+          }
+          return true;
+        }));
+      }
+
+      return {true, E};
+    }
+
+    Expr *walkToExprPost(Expr *E) override {
+      if (auto *closure = dyn_cast<ClosureExpr>(E)) {
+        assert(CurrDC == closure && "DeclContext imbalance");
+        CurrDC = closure->getParent();
       }
+      return E;
     }
-  }
 
-  // When we're type checking a single-expression closure, we need to reset the
-  // DeclContext to this closure for the recursive type checking.  Otherwise,
-  // if there is a closure in the subexpression, we can violate invariants.
-  auto newDC = NearestClosure ? NearestClosure : CS.DC;
-  llvm::SaveAndRestore<DeclContext *> SavedDC(CS.DC, newDC);
+  } finder(CS.DC, subExpr);
 
-  // Otherwise, we're ok to type check the subexpr.
-  return typeCheckChildIndependently(subExpr, options);
+  expr->walk(finder);
+  return finder.DC;
 }
 
 /// For an expression being type checked with a CTP_CalleeResult contextual
@@ -6723,8 +6729,7 @@ bool FailureDiagnosis::diagnoseMemberFailures(
     NameLoc = DeclNameLoc(memberRange.Start);
 
     // Retypecheck the anchor type, which is the base of the member expression.
-    baseExpr =
-        typeCheckArbitrarySubExprIndependently(baseExpr, TCC_AllowLValue);
+    baseExpr = typeCheckChildIndependently(baseExpr, TCC_AllowLValue);
     if (!baseExpr)
       return true;
 
diff --git a/validation-test/Sema/type_checker_crashers_fixed/rdar50869732.swift b/validation-test/Sema/type_checker_crashers_fixed/rdar50869732.swift
new file mode 100644
index 0000000000000..9c3714615fab9
--- /dev/null
+++ b/validation-test/Sema/type_checker_crashers_fixed/rdar50869732.swift
@@ -0,0 +1,34 @@
+// RUN: %target-typecheck-verify-swift
+
+protocol P {
+  associatedtype T : P
+}
+
+struct Generic<T> {
+  init(_ value: T) {}
+}
+
+@_functionBuilder
+struct Builder {
+  static func buildBlock<C0, C1>(_ c0: C0, _ c1: C1)
+           -> Generic<(C0, C1)> where C0 : P, C1 : P {
+    return Generic((c0, c1))
+  }
+}
+
+struct G<C> {
+  init(@Builder _: () -> C) {}
+}
+
+struct Empty {
+  init() {}
+}
+
+struct Test<T> where T : P {
+  init(@Builder _: () -> T) {}
+}
+
+let x = G {
+  Empty()
+  Test { <#code#> } // expected-error {{editor placeholder in source file}}
+}