diff --git a/src/components/fx/hover.js b/src/components/fx/hover.js
index 7fc51ce2184..4704f89abc6 100644
--- a/src/components/fx/hover.js
+++ b/src/components/fx/hover.js
@@ -704,7 +704,7 @@ function _hover(gd, evt, subplot, noHoverEvent) {
 
     var hoverLabels = createHoverText(hoverData, labelOpts, gd);
 
-    hoverAvoidOverlaps(hoverData, rotateLabels ? 'xa' : 'ya', fullLayout);
+    hoverAvoidOverlaps(hoverLabels, rotateLabels ? 'xa' : 'ya', fullLayout);
 
     alignHoverText(hoverLabels, rotateLabels);
 
@@ -879,6 +879,7 @@ function createHoverText(hoverData, opts, gd) {
 
     // show all the individual labels
 
+
     // first create the objects
     var hoverLabels = container.selectAll('g.hovertext')
         .data(hoverData, function(d) {
@@ -1091,17 +1092,21 @@ function createHoverText(hoverData, opts, gd) {
 // know what happens if the group spans all the way from one edge to
 // the other, though it hardly matters - there's just too much
 // information then.
-function hoverAvoidOverlaps(hoverData, ax, fullLayout) {
+function hoverAvoidOverlaps(hoverLabels, ax, fullLayout) {
     var nummoves = 0;
     var axSign = 1;
+    var nLabels = hoverLabels.size();
 
     // make groups of touching points
-    var pointgroups = hoverData.map(function(d, i) {
+    var pointgroups = new Array(nLabels);
+
+    hoverLabels.each(function(d, i) {
         var axis = d[ax];
         var axIsX = axis._id.charAt(0) === 'x';
         var rng = axis.range;
         if(!i && rng && ((rng[0] > rng[1]) !== axIsX)) axSign = -1;
-        return [{
+        pointgroups[i] = [{
+            datum: d,
             i: i,
             traceIndex: d.trace.index,
             dp: 0,
@@ -1111,8 +1116,9 @@ function hoverAvoidOverlaps(hoverData, ax, fullLayout) {
             pmin: 0,
             pmax: (axIsX ? fullLayout.width : fullLayout.height)
         }];
-    })
-    .sort(function(a, b) {
+    });
+
+    pointgroups.sort(function(a, b) {
         return (a[0].posref - b[0].posref) ||
             // for equal positions, sort trace indices increasing or decreasing
             // depending on whether the axis is reversed or not... so stacked
@@ -1198,7 +1204,7 @@ function hoverAvoidOverlaps(hoverData, ax, fullLayout) {
 
     // loop through groups, combining them if they overlap,
     // until nothing moves
-    while(!donepositioning && nummoves <= hoverData.length) {
+    while(!donepositioning && nummoves <= nLabels) {
         // to avoid infinite loops, don't move more times
         // than there are traces
         nummoves++;
@@ -1246,7 +1252,7 @@ function hoverAvoidOverlaps(hoverData, ax, fullLayout) {
         var grp = pointgroups[i];
         for(j = grp.length - 1; j >= 0; j--) {
             var pt = grp[j];
-            var hoverPt = hoverData[pt.i];
+            var hoverPt = pt.datum;
             hoverPt.offset = pt.dp;
             hoverPt.del = pt.del;
         }
diff --git a/test/jasmine/tests/hover_label_test.js b/test/jasmine/tests/hover_label_test.js
index 4eabcc61a9f..446bff0cf37 100644
--- a/test/jasmine/tests/hover_label_test.js
+++ b/test/jasmine/tests/hover_label_test.js
@@ -1685,6 +1685,40 @@ describe('hover info', function() {
             .catch(failTest)
             .then(done);
         });
+
+        it('should avoid overlaps on *too close* pts are filtered out', function(done) {
+            Plotly.plot(gd, [
+                {name: 'A', x: [9, 10], y: [9, 10]},
+                {name: 'B', x: [8, 9], y: [9, 10]},
+                {name: 'C', x: [9, 10], y: [10, 11]}
+            ], {
+                xaxis: {range: [0, 100]},
+                yaxis: {range: [0, 100]},
+                width: 700,
+                height: 450
+            })
+            .then(function() { _hover(gd, 67, 239); })
+            .then(function() {
+                var nodesA = hoverInfoNodes('A');
+                var nodesC = hoverInfoNodes('C');
+
+                // Ensure layout correct
+                assertLabelsInsideBoxes(nodesA, 'A');
+                assertLabelsInsideBoxes(nodesC, 'C');
+                assertSecondaryRightToPrimaryBox(nodesA, 'A');
+                assertSecondaryRightToPrimaryBox(nodesC, 'C');
+
+                // Ensure stacking, finally
+                var boxA = nodesA.primaryBox.getBoundingClientRect();
+                var boxC = nodesC.primaryBox.getBoundingClientRect();
+
+                // Be robust against floating point arithmetic and subtle future layout changes
+                expect(calcLineOverlap(boxA.top, boxA.bottom, boxC.top, boxC.bottom))
+                  .toBeWithin(0, 1);
+            })
+            .catch(failTest)
+            .then(done);
+        });
     });
 
     describe('hovertemplate', function() {