Index: src/org/openstreetmap/josm/data/validation/tests/DuplicateNode.java
===================================================================
--- src/org/openstreetmap/josm/data/validation/tests/DuplicateNode.java	(revision 16809)
+++ src/org/openstreetmap/josm/data/validation/tests/DuplicateNode.java	(working copy)
@@ -333,8 +333,8 @@
         // never merge nodes with different tags.
         if (testError.getCode() == DUPLICATE_NODE) return false;
         // cannot merge nodes outside download area
-        final Iterator<? extends OsmPrimitive> it = testError.getPrimitives().iterator();
-        return it.hasNext() && !it.next().isOutsideDownloadArea();
+        return testError.getPrimitives().stream().filter(p -> !p.isDeleted()).count() > 1
+                && Command.checkOutlyingOrIncompleteOperation(testError.getPrimitives(), null) == Command.IS_OK;
         // everything else is ok to merge
     }
 }