diff --git a/shell/hush.c b/shell/hush.c
index 603e19f..82bad66 100644
--- a/shell/hush.c
+++ b/shell/hush.c
@@ -2691,19 +2691,18 @@
 		arg = ++p;
 	} /* end of "while (SPECIAL_VAR_SYMBOL is found) ..." */
 
-	{
-		int len = strlen(arg);
-		if (len) {
-			o_debug_list("expand_vars_to_list[a]", output, n);
-			o_addstr(output, arg, len + 1);
-			o_debug_list("expand_vars_to_list[b]", output, n);
-		} else if (output->length == o_get_last_ptr(output, n)) { /* expansion is empty */
-			if (!(ored_ch & 0x80)) { /* all vars were not quoted... */
-				n--;
-				/* allow to reuse list[n] later without re-growth */
-				output->has_empty_slot = 1;
-			}
-		}
+	if (arg[0]) {
+		o_debug_list("expand_vars_to_list[a]", output, n);
+		o_addstr(output, arg, strlen(arg) + 1);
+		o_debug_list("expand_vars_to_list[b]", output, n);
+	} else if (output->length == o_get_last_ptr(output, n) /* expansion is empty */
+	 && !(ored_ch & 0x80) /* and all vars were not quoted. */
+	) {
+		n--;
+		/* allow to reuse list[n] later without re-growth */
+		output->has_empty_slot = 1;
+	} else {
+		o_addchr(output, '\0');
 	}
 	return n;
 }
diff --git a/shell/hush_test/hush-bugs/tick2.tests b/shell/hush_test/hush-bugs/tick2.tests
deleted file mode 100755
index dc51805..0000000
--- a/shell/hush_test/hush-bugs/tick2.tests
+++ /dev/null
@@ -1,6 +0,0 @@
-# Bag: backticks are executed even inside not-taken if
-if false; then
-    echo "FOO"
-    tmp=`echo BAR >&2`
-fi
-echo BAZ
diff --git a/shell/hush_test/hush-bugs/tick.right b/shell/hush_test/hush-psubst/tick.right
similarity index 100%
rename from shell/hush_test/hush-bugs/tick.right
rename to shell/hush_test/hush-psubst/tick.right
diff --git a/shell/hush_test/hush-bugs/tick.tests b/shell/hush_test/hush-psubst/tick.tests
similarity index 100%
rename from shell/hush_test/hush-bugs/tick.tests
rename to shell/hush_test/hush-psubst/tick.tests
diff --git a/shell/hush_test/hush-bugs/tick2.right b/shell/hush_test/hush-psubst/tick2.right
similarity index 100%
rename from shell/hush_test/hush-bugs/tick2.right
rename to shell/hush_test/hush-psubst/tick2.right
diff --git a/shell/hush_test/hush-psubst/tick2.tests b/shell/hush_test/hush-psubst/tick2.tests
new file mode 100755
index 0000000..db4e944
--- /dev/null
+++ b/shell/hush_test/hush-psubst/tick2.tests
@@ -0,0 +1,5 @@
+if false; then
+    echo "FOO"
+    tmp=`echo BAR >&2`
+fi
+echo BAZ