diff --git a/community-build/community-projects/sourcecode b/community-build/community-projects/sourcecode
index c913da4552a0..2c0ae1b34aad 160000
--- a/community-build/community-projects/sourcecode
+++ b/community-build/community-projects/sourcecode
@@ -1 +1 @@
-Subproject commit c913da4552a0ce8be1526447b614fb5de01bc392
+Subproject commit 2c0ae1b34aada9ef1e4e37b507df1cd7005fe067
diff --git a/compiler/src/dotty/tools/dotc/transform/Splicer.scala b/compiler/src/dotty/tools/dotc/transform/Splicer.scala
index 7a41c81bd288..ddab4c1e04fe 100644
--- a/compiler/src/dotty/tools/dotc/transform/Splicer.scala
+++ b/compiler/src/dotty/tools/dotc/transform/Splicer.scala
@@ -41,7 +41,7 @@ object Splicer {
     case Quoted(quotedTree) => quotedTree
     case _ =>
       val interpreter = new Interpreter(pos, classLoader)
-      val macroOwner = ctx.newSymbol(ctx.owner, NameKinds.UniqueName.fresh(nme.MACROkw), Synthetic, defn.AnyType, coord = tree.span)
+      val macroOwner = ctx.newSymbol(ctx.owner, nme.MACROkw, Macro | Synthetic, defn.AnyType, coord = tree.span)
       try {
         given Context = ctx.withOwner(macroOwner)
         // Some parts of the macro are evaluated during the unpickling performed in quotedExprToTree
@@ -100,7 +100,10 @@ object Splicer {
             traverseChildren(tree)
       private def isEscapedVariable(sym: Symbol)(given ctx: Context): Boolean =
         sym.exists && !sym.is(Package)
-        && sym.owner.ownersIterator.contains(expansionOwner) // symbol was generated within the macro expansion
+        && sym.owner.ownersIterator.exists(x =>
+          x == expansionOwner || // symbol was generated within this macro expansion
+          x.is(Macro, butNot = Method) && x.name == nme.MACROkw // symbol was generated within another macro expansion
+        )
         && !locals.contains(sym) // symbol is not in current scope
     }.traverse(tree)
     tree
diff --git a/tests/neg-macros/i7142h/Macro_1.scala b/tests/neg-macros/i7142h/Macro_1.scala
new file mode 100644
index 000000000000..f33e6410a94a
--- /dev/null
+++ b/tests/neg-macros/i7142h/Macro_1.scala
@@ -0,0 +1,11 @@
+package macros
+import scala.quoted._
+
+var saved = Option.empty[Expr[Int]]
+
+def oops(given QuoteContext) = {
+  if (saved.isEmpty) '{ (x: Int) => ${ saved = Some('{x}); 'x } }
+  else saved.get
+}
+
+inline def test = ${oops}
diff --git a/tests/neg-macros/i7142h/Test_2.scala b/tests/neg-macros/i7142h/Test_2.scala
new file mode 100644
index 000000000000..4726f1d3d14c
--- /dev/null
+++ b/tests/neg-macros/i7142h/Test_2.scala
@@ -0,0 +1,4 @@
+object Test {
+  macros.test
+  macros.test // error
+}
diff --git a/tests/run-custom-args/Yretain-trees/tasty-extractors-owners.check b/tests/run-custom-args/Yretain-trees/tasty-extractors-owners.check
index c42e3ffd63b2..5e16ce08121f 100644
--- a/tests/run-custom-args/Yretain-trees/tasty-extractors-owners.check
+++ b/tests/run-custom-args/Yretain-trees/tasty-extractors-owners.check
@@ -1,5 +1,5 @@
 foo
-ValDef("macro$1", Inferred(), None)
+ValDef("macro", Inferred(), None)
 
 bar
 DefDef("foo", Nil, Nil, Inferred(), None)
@@ -8,7 +8,7 @@ bar2
 DefDef("foo", Nil, Nil, Inferred(), None)
 
 foo2
-ValDef("macro$1", Inferred(), None)
+ValDef("macro", Inferred(), None)
 
 baz
 ValDef("foo2", Inferred(), None)
diff --git a/tests/run-macros/tasty-location.check b/tests/run-macros/tasty-location.check
index c066a966ebdb..53e831291709 100644
--- a/tests/run-macros/tasty-location.check
+++ b/tests/run-macros/tasty-location.check
@@ -1,6 +1,6 @@
-foo Location(List(Test$, loc1, macro$1))
-foo Location(List(Test$, main, macro$2))
-foo Location(List(Test$, main, macro$3))
-foo Location(List(Test$, main, bar, macro$4))
-foo Location(List(Test$, main, bar, baz, macro$5))
-foo Location(List(Test$, main, f, $anonfun, macro$6))
+foo Location(List(Test$, loc1, macro))
+foo Location(List(Test$, main, macro))
+foo Location(List(Test$, main, macro))
+foo Location(List(Test$, main, bar, macro))
+foo Location(List(Test$, main, bar, baz, macro))
+foo Location(List(Test$, main, f, $anonfun, macro))