diff --git a/CHANGES.md b/CHANGES.md
index 4aee683e..c6b1df5e 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -6,6 +6,7 @@
 - [pull #501] Fix link patterns extra matching against internal hashes
 - [pull #502] Replace deprecated `optparse` with `argparse`
 - [pull #506] Fix `_uniform_outdent` failing with empty strings (issue #505)
+- [pull #509] Fix HTML elements not unhashing correctly (issue 508)
 
 
 ## python-markdown2 2.4.8
diff --git a/lib/markdown2.py b/lib/markdown2.py
index 50d97215..7f55b458 100755
--- a/lib/markdown2.py
+++ b/lib/markdown2.py
@@ -890,7 +890,7 @@ def _strict_tag_block_sub(self, text, html_tags_re, callback):
                     tag_count -= 1
                 else:
                     # if close tag is in same line
-                    if '</%s>' % is_markup.group(2) in chunk[is_markup.end():]:
+                    if self._tag_is_closed(is_markup.group(2), chunk):
                         # we must ignore these
                         is_markup = None
                     else:
@@ -908,6 +908,10 @@ def _strict_tag_block_sub(self, text, html_tags_re, callback):
 
         return result
 
+    def _tag_is_closed(self, tag_name, text):
+        # super basic check if number of open tags == number of closing tags
+        return len(re.findall('<%s(?:.*?)>' % tag_name, text)) == len(re.findall('</%s>' % tag_name, text))
+
     def _strip_link_definitions(self, text):
         # Strips link definitions from text, stores the URLs and titles in
         # hash references.
diff --git a/test/tm-cases/hash_html_blocks_issue_508.html b/test/tm-cases/hash_html_blocks_issue_508.html
new file mode 100644
index 00000000..2c176c15
--- /dev/null
+++ b/test/tm-cases/hash_html_blocks_issue_508.html
@@ -0,0 +1,12 @@
+<div><div></div>
+</div>
+
+<div></div>
+
+<div></div>
+
+<div></div>
+
+<ul>
+<li>A</li>
+</ul>
diff --git a/test/tm-cases/hash_html_blocks_issue_508.text b/test/tm-cases/hash_html_blocks_issue_508.text
new file mode 100644
index 00000000..dbe7342d
--- /dev/null
+++ b/test/tm-cases/hash_html_blocks_issue_508.text
@@ -0,0 +1,7 @@
+<div><div></div>
+</div>
+<div></div>
+<div></div>
+<div></div>
+
+- A