diff --git a/compiler/src/dotty/tools/dotc/typer/Namer.scala b/compiler/src/dotty/tools/dotc/typer/Namer.scala
index a7dc9c6ee3b7..0c326cfc3735 100644
--- a/compiler/src/dotty/tools/dotc/typer/Namer.scala
+++ b/compiler/src/dotty/tools/dotc/typer/Namer.scala
@@ -1009,8 +1009,8 @@ class Namer { typer: Typer =>
         case tp: TypeBounds =>
           def recur(tp: Type): Type = tp match
             case tp: HKTypeLambda if !tp.isDeclaredVarianceLambda =>
-              tp.withVariances(tp.paramNames.map(alwaysInvariant))
-               .derivedLambdaType(resType = recur(tp.resType))
+              val tp1 = tp.withVariances(tp.paramNames.map(alwaysInvariant))
+              tp1.derivedLambdaType(resType = recur(tp1.resType))
             case tp => tp
           tp.derivedTypeBounds(tp.lo, recur(tp.hi))
         case _ =>
diff --git a/tests/pos/nestedLambdas.scala b/tests/pos/nestedLambdas.scala
index 869c11bfc838..8cc0020dbfbb 100644
--- a/tests/pos/nestedLambdas.scala
+++ b/tests/pos/nestedLambdas.scala
@@ -10,11 +10,11 @@ class Test {
 
   val y: A[Int][Boolean] = x
 
-  def f[X <: T[Int]] = ???
+  def f[X <: [Y] =>> T[Int][Y]] = ???
 
   f[A[Int]]
 
-  def g[X <: T] = ???
+  def g[X <: [Y] =>> [Z] =>> T[Y][Z]] = ???
 
   g[A]