diff --git a/dsl.cc b/dsl.cc
index 93b6570b..4de6521d 100644
--- a/dsl.cc
+++ b/dsl.cc
@@ -70,7 +70,7 @@ DEF_EX_STR( exCantReadFile, "Can't read file", Dictionary::Ex )
 enum
 {
   Signature = 0x584c5344, // DSLX on little-endian, XLSD on big-endian
-  CurrentFormatVersion = 16 + BtreeIndexing::FormatVersion + Folding::Version,
+  CurrentFormatVersion = 17 + BtreeIndexing::FormatVersion + Folding::Version,
   CurrentZipSupportVersion = 2
 };
 
diff --git a/dsl_details.cc b/dsl_details.cc
index 8da4009a..0c2289bd 100644
--- a/dsl_details.cc
+++ b/dsl_details.cc
@@ -1049,8 +1049,18 @@ void expandTildes( wstring & str, wstring const & tildeReplacement )
     else
     if ( str[ x ] == L'~' )
     {
-      str.replace( x, 1, tildeReplacement );
-      x += tildeReplacement.size();
+      if( x > 0 && str[ x - 1 ] == '^' && ( x < 2 || str[ x - 2 ] != '\\' ) )
+      {
+        str.replace( x - 1, 2, tildeReplacement );
+        str[ x - 1 ] = QChar( str[ x - 1 ] ).isUpper() ? QChar::toLower( str[ x - 1 ] )
+                                                       : QChar::toUpper( str[ x - 1 ] );
+        x = x - 1 + tildeReplacement.size();
+      }
+      else
+      {
+        str.replace( x, 1, tildeReplacement );
+        x += tildeReplacement.size();
+      }
     }
     else
       ++x;