diff --git a/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.symbols b/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.symbols
deleted file mode 100644
index c94bc76ef60a3..0000000000000
--- a/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.symbols
+++ /dev/null
@@ -1,39 +0,0 @@
-=== tests/cases/compiler/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts ===
-interface StateSchema {
->StateSchema : Symbol(StateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 0, 0))
-
-  states?: {
->states : Symbol(StateSchema.states, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 0, 23))
-
-    [key: string]: StateSchema;
->key : Symbol(key, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 2, 5))
->StateSchema : Symbol(StateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 0, 0))
-
-  };
-}
-
-declare class StateNode<TStateSchema extends StateSchema> {
->StateNode : Symbol(StateNode, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 4, 1))
->TStateSchema : Symbol(TStateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 6, 24))
->StateSchema : Symbol(StateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 0, 0))
-
-  schema: TStateSchema;
->schema : Symbol(StateNode.schema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 6, 59))
->TStateSchema : Symbol(TStateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 6, 24))
-}
-
-type StateNodesConfig<TStateSchema extends StateSchema> = {
->StateNodesConfig : Symbol(StateNodesConfig, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 8, 1))
->TStateSchema : Symbol(TStateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 10, 22))
->StateSchema : Symbol(StateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 0, 0))
-
-  [K in keyof TStateSchema["states"]]: StateNode<NonNullable<TStateSchema["states"]>[K]>;
->K : Symbol(K, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 11, 3))
->TStateSchema : Symbol(TStateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 10, 22))
->StateNode : Symbol(StateNode, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 4, 1))
->NonNullable : Symbol(NonNullable, Decl(lib.es5.d.ts, --, --))
->TStateSchema : Symbol(TStateSchema, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 10, 22))
->K : Symbol(K, Decl(mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts, 11, 3))
-
-};
-
diff --git a/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.types b/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.types
deleted file mode 100644
index 324becfe6b1cf..0000000000000
--- a/tests/baselines/reference/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.types
+++ /dev/null
@@ -1,24 +0,0 @@
-=== tests/cases/compiler/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts ===
-interface StateSchema {
-  states?: {
->states : { [key: string]: StateSchema; } | undefined
-
-    [key: string]: StateSchema;
->key : string
-
-  };
-}
-
-declare class StateNode<TStateSchema extends StateSchema> {
->StateNode : StateNode<TStateSchema>
-
-  schema: TStateSchema;
->schema : TStateSchema
-}
-
-type StateNodesConfig<TStateSchema extends StateSchema> = {
->StateNodesConfig : StateNodesConfig<TStateSchema>
-
-  [K in keyof TStateSchema["states"]]: StateNode<NonNullable<TStateSchema["states"]>[K]>;
-};
-
diff --git a/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.symbols b/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.symbols
new file mode 100644
index 0000000000000..0ee239560c373
--- /dev/null
+++ b/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.symbols
@@ -0,0 +1,77 @@
+=== tests/cases/compiler/nonNullableWithNullableGenericTypeArg.ts ===
+// repro from #50539
+
+interface StateSchema {
+>StateSchema : Symbol(StateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 0, 0))
+
+  states?: {
+>states : Symbol(StateSchema.states, Decl(nonNullableWithNullableGenericTypeArg.ts, 2, 23))
+
+    [key: string]: StateSchema;
+>key : Symbol(key, Decl(nonNullableWithNullableGenericTypeArg.ts, 4, 5))
+>StateSchema : Symbol(StateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 0, 0))
+
+  };
+}
+
+declare class StateNode<TStateSchema extends StateSchema> {
+>StateNode : Symbol(StateNode, Decl(nonNullableWithNullableGenericTypeArg.ts, 6, 1))
+>TStateSchema : Symbol(TStateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 8, 24))
+>StateSchema : Symbol(StateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 0, 0))
+
+  schema: TStateSchema;
+>schema : Symbol(StateNode.schema, Decl(nonNullableWithNullableGenericTypeArg.ts, 8, 59))
+>TStateSchema : Symbol(TStateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 8, 24))
+}
+
+type StateNodesConfig<TStateSchema extends StateSchema> = {
+>StateNodesConfig : Symbol(StateNodesConfig, Decl(nonNullableWithNullableGenericTypeArg.ts, 10, 1))
+>TStateSchema : Symbol(TStateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 12, 22))
+>StateSchema : Symbol(StateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 0, 0))
+
+  [K in keyof TStateSchema["states"]]: StateNode<NonNullable<TStateSchema["states"]>[K]>;
+>K : Symbol(K, Decl(nonNullableWithNullableGenericTypeArg.ts, 13, 3))
+>TStateSchema : Symbol(TStateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 12, 22))
+>StateNode : Symbol(StateNode, Decl(nonNullableWithNullableGenericTypeArg.ts, 6, 1))
+>NonNullable : Symbol(NonNullable, Decl(lib.es5.d.ts, --, --))
+>TStateSchema : Symbol(TStateSchema, Decl(nonNullableWithNullableGenericTypeArg.ts, 12, 22))
+>K : Symbol(K, Decl(nonNullableWithNullableGenericTypeArg.ts, 13, 3))
+
+};
+
+// repro from #50539#issuecomment-1234067835
+
+type Ordering<TOrderBy extends string> = {
+>Ordering : Symbol(Ordering, Decl(nonNullableWithNullableGenericTypeArg.ts, 14, 2))
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 18, 14))
+
+    orderBy: TOrderBy
+>orderBy : Symbol(orderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 18, 42))
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 18, 14))
+}
+
+type Query<TOrderBy extends string> = {
+>Query : Symbol(Query, Decl(nonNullableWithNullableGenericTypeArg.ts, 20, 1))
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 22, 11))
+
+    order?: Ordering<TOrderBy>
+>order : Symbol(order, Decl(nonNullableWithNullableGenericTypeArg.ts, 22, 39))
+>Ordering : Symbol(Ordering, Decl(nonNullableWithNullableGenericTypeArg.ts, 14, 2))
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 22, 11))
+}
+
+type QueryHandler<
+>QueryHandler : Symbol(QueryHandler, Decl(nonNullableWithNullableGenericTypeArg.ts, 24, 1))
+
+    TQuery extends Query<TOrderBy>,
+>TQuery : Symbol(TQuery, Decl(nonNullableWithNullableGenericTypeArg.ts, 26, 18))
+>Query : Symbol(Query, Decl(nonNullableWithNullableGenericTypeArg.ts, 20, 1))
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 27, 35))
+
+    TOrderBy extends string = NonNullable<TQuery["order"]>["orderBy"]
+>TOrderBy : Symbol(TOrderBy, Decl(nonNullableWithNullableGenericTypeArg.ts, 27, 35))
+>NonNullable : Symbol(NonNullable, Decl(lib.es5.d.ts, --, --))
+>TQuery : Symbol(TQuery, Decl(nonNullableWithNullableGenericTypeArg.ts, 26, 18))
+
+> = {}
+
diff --git a/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.types b/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.types
new file mode 100644
index 0000000000000..30c1c1fd220d0
--- /dev/null
+++ b/tests/baselines/reference/nonNullableWithNullableGenericTypeArg.types
@@ -0,0 +1,49 @@
+=== tests/cases/compiler/nonNullableWithNullableGenericTypeArg.ts ===
+// repro from #50539
+
+interface StateSchema {
+  states?: {
+>states : { [key: string]: StateSchema; } | undefined
+
+    [key: string]: StateSchema;
+>key : string
+
+  };
+}
+
+declare class StateNode<TStateSchema extends StateSchema> {
+>StateNode : StateNode<TStateSchema>
+
+  schema: TStateSchema;
+>schema : TStateSchema
+}
+
+type StateNodesConfig<TStateSchema extends StateSchema> = {
+>StateNodesConfig : StateNodesConfig<TStateSchema>
+
+  [K in keyof TStateSchema["states"]]: StateNode<NonNullable<TStateSchema["states"]>[K]>;
+};
+
+// repro from #50539#issuecomment-1234067835
+
+type Ordering<TOrderBy extends string> = {
+>Ordering : Ordering<TOrderBy>
+
+    orderBy: TOrderBy
+>orderBy : TOrderBy
+}
+
+type Query<TOrderBy extends string> = {
+>Query : Query<TOrderBy>
+
+    order?: Ordering<TOrderBy>
+>order : Ordering<TOrderBy> | undefined
+}
+
+type QueryHandler<
+>QueryHandler : QueryHandler<TQuery, TOrderBy>
+
+    TQuery extends Query<TOrderBy>,
+    TOrderBy extends string = NonNullable<TQuery["order"]>["orderBy"]
+> = {}
+
diff --git a/tests/cases/compiler/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts b/tests/cases/compiler/nonNullableWithNullableGenericTypeArg.ts
similarity index 50%
rename from tests/cases/compiler/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts
rename to tests/cases/compiler/nonNullableWithNullableGenericTypeArg.ts
index 025170356f969..8b8d4dc0e24ca 100644
--- a/tests/cases/compiler/mappedTypeOverNullableConstraintWithIndexSignatureWithNonNullable.ts
+++ b/tests/cases/compiler/nonNullableWithNullableGenericTypeArg.ts
@@ -1,6 +1,8 @@
 // @noEmit: true
 // @strict: true
 
+// repro from #50539
+
 interface StateSchema {
   states?: {
     [key: string]: StateSchema;
@@ -14,3 +16,18 @@ declare class StateNode<TStateSchema extends StateSchema> {
 type StateNodesConfig<TStateSchema extends StateSchema> = {
   [K in keyof TStateSchema["states"]]: StateNode<NonNullable<TStateSchema["states"]>[K]>;
 };
+
+// repro from #50539#issuecomment-1234067835
+
+type Ordering<TOrderBy extends string> = {
+    orderBy: TOrderBy
+}
+
+type Query<TOrderBy extends string> = {
+    order?: Ordering<TOrderBy>
+}
+
+type QueryHandler<
+    TQuery extends Query<TOrderBy>,
+    TOrderBy extends string = NonNullable<TQuery["order"]>["orderBy"]
+> = {}