diff --git a/ChangeLog b/ChangeLog
index 8537968..9724c9d 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,7 @@
+Tue 07 Jan 2020 Aleksey
+	* Bugfix: restore behavior of 'rhash -rc' to be the same as in v1.3.8
+	* Bugfix: fix a segfault and memory errors
+
 Sat 14 Dec 2019 Aleksey
 	* === Version 1.3.9 ===
 
diff --git a/calc_sums.c b/calc_sums.c
index a76c8c9..0f25224 100644
--- a/calc_sums.c
+++ b/calc_sums.c
@@ -535,6 +535,7 @@ int check_hash_file(file_t* file, int chdir)
 			log_error_msg_file_t(_("file is binary: %s\n"), file);
 			if (fd != stdin)
 				fclose(fd);
+			file_cleanup(&parent_dir);
 			return -1;
 		}
 
@@ -586,6 +587,7 @@ int check_hash_file(file_t* file, int chdir)
 			rhash_data.miss++;
 		rhash_data.processed++;
 	}
+	file_cleanup(&parent_dir);
 	time = rsh_timer_stop(&timer);
 
 	if (res >= -1 && (rsh_fprintf(rhash_data.out, "%s\n", str_set(buf, '-', 80)) < 0 ||
diff --git a/file.c b/file.c
index 6f593f9..2f0eb2a 100644
--- a/file.c
+++ b/file.c
@@ -266,7 +266,7 @@ static int detect_path_encoding(file_t* file, wchar_t* dir_path, const char* pri
 	int i;
 	assert(file && !file->real_path);
 	file->mode &= ~FileMaskStatBits;
-	if (!dir_path && ascii)
+	if (ascii)
 		file->mode |= FileIsAsciiPrintPath;
 	/* detect encoding in two or four steps */
 	for (i = 0; i < 4; i += step) {
@@ -333,45 +333,39 @@ int file_init_by_print_path(file_t* file, file_t* prepend_dir, const char* print
 #ifdef _WIN32
 	{
 		const char** primary_path;
-		const char* dir_primary_path;
 		wchar_t* dir_path = (prepend_dir && !IS_DOT_TSTR(prepend_dir->real_path) ? prepend_dir->real_path : NULL);
 		int encoding = detect_path_encoding(file, dir_path, print_path, init_flags);
 		if (encoding < 0)
 			return -1;
 		if (encoding == 0) {
 			primary_path = &file->print_path;
-			dir_primary_path = (prepend_dir ? file_get_print_path(prepend_dir, FPathUtf8) : NULL);
 		} else {
 			primary_path = &file->native_path;
-			dir_primary_path = (prepend_dir ? file_get_print_path(prepend_dir, FPathNative) : NULL);
 		}
-		if ((!dir_primary_path || IS_DOT_TSTR(dir_primary_path)) &&
-				(init_flags & (FileInitReusePath | FileInitUpdatePrintPathLastSlash)) == FileInitReusePath) {
+		if ((init_flags & (FileInitReusePath | FileInitUpdatePrintPathLastSlash)) == FileInitReusePath) {
 			*primary_path = print_path;
 			file->mode |= (encoding == 0 ? FileDontFreePrintPath : FileDontFreeNativePath);
 		} else {
-			*primary_path = make_path(dir_primary_path, print_path, 1);
+			*primary_path = rsh_strdup(print_path);
 		}
-		return 0;
 	}
 #else
 	if (!prepend_dir || IS_DOT_STR(prepend_dir->real_path)) {
-		file_init(file, print_path, init_flags);
+		file_init(file, print_path, init_flags & (FileInitReusePath | FileMaskModeBits));
 	} else {
-		const char* path = make_path(prepend_dir->real_path, print_path, 0);
-		file_init(file, path, init_flags & ~FileInitReusePath);
+		file->real_path = make_path(prepend_dir->real_path, print_path, 0);
+		file->mode = init_flags & FileMaskModeBits;
 	}
-	if (!prepend_dir || IS_DOT_STR(prepend_dir->print_path) ||
-			(!prepend_dir->print_path && opt.path_separator != ALIEN_PATH_SEPARATOR)) {
-		if ((init_flags & FileInitReusePath) != 0) {
-			file->print_path = print_path;
-			file->mode |= FileDontFreePrintPath;
-		} else
-			file->print_path = rsh_strdup(print_path);
+	assert(file->print_path == NULL);
+	if ((init_flags & (FileInitReusePath | FileInitUpdatePrintPathLastSlash)) == FileInitReusePath) {
+		file->print_path = print_path;
+		file->mode |= FileDontFreePrintPath;
 	} else {
-		file->print_path = make_path(file_get_print_path(prepend_dir, FPathPrimaryEncoding), print_path, 1);
+		file->print_path = rsh_strdup(print_path);
 	}
 #endif
+	/* note: flag FileInitUpdatePrintPathLastSlash is used only with file_init() */
+	assert((init_flags & FileInitUpdatePrintPathLastSlash) == 0);
 	if ((init_flags & (FileInitRunFstat | FileInitRunLstat)) &&
 			file_stat(file, (init_flags & FileInitRunLstat)) < 0)
 		return -1;
@@ -544,9 +538,10 @@ static char* get_modified_path(const char* path, const char* str, int operation)
 			end_pos = strlen(path);
 			start_pos = (end_pos > 0 ? end_pos - 1 : 0);
 			for (; start_pos > 0 && !IS_ANY_SLASH(path[start_pos]); start_pos--);
-			for (; start_pos > 0 && IS_ANY_SLASH(path[start_pos]); start_pos--);
-			if (start_pos == 0)
+			if (start_pos == 0 && !IS_ANY_SLASH(path[start_pos]))
 				return rsh_strdup(".");
+			for (; start_pos > 0 && IS_ANY_SLASH(path[start_pos]); start_pos--);
+			start_pos++;
 		} else {
 			char* point = strrchr(path, '.');
 			if (!point)
@@ -580,9 +575,10 @@ static tpath_t get_modified_tpath(ctpath_t path, const char* str, int operation)
 			end_pos = wcslen(path);
 			start_pos = (end_pos > 0 ? end_pos - 1 : 0);
 			for (; start_pos > 0 && !IS_ANY_TSLASH(path[start_pos]); start_pos--);
-			for (; start_pos > 0 && IS_ANY_TSLASH(path[start_pos]); start_pos--);
-			if (start_pos == 0)
+			if (start_pos == 0 && !IS_ANY_TSLASH(path[start_pos]))
 				return rsh_wcsdup(L".");
+			for (; start_pos > 0 && IS_ANY_TSLASH(path[start_pos]); start_pos--);
+			start_pos++;
 		} else {
 			rsh_tchar* point = wcsrchr(path, L'.');
 			if (!point)
diff --git a/hash_check.c b/hash_check.c
index 1f9c936..582a09d 100644
--- a/hash_check.c
+++ b/hash_check.c
@@ -210,9 +210,9 @@ static int detect_hash_type(char** ptr, char* end, int* p_len)
 	} else {
 		/* search backward (but no more then 129 symbols) */
 		if ((p - end) >= 129) end = p - 129;
-		for (; p >= end && p[-1] == '='; eq_num++, p--)
+		for (; p > end && p[-1] == '='; eq_num++, p--)
 			char_type = FmtBase64;
-		for (; p >= end && (next_type &= test_hash_char(p[-1])); len++, p--)
+		for (; p > end && (next_type &= test_hash_char(p[-1])); len++, p--)
 			char_type = next_type;
 	}
 	if ((char_type & FmtBase64) != 0)
diff --git a/tests/test_rhash.sh b/tests/test_rhash.sh
index 8c6e40d..db41b19 100755
--- a/tests/test_rhash.sh
+++ b/tests/test_rhash.sh
@@ -84,12 +84,9 @@ remove_tmpdir()
 trap remove_tmpdir EXIT
 
 # prepare test files
-SUBDIR=$RHASH_TMP/dir1
-mkdir $RHASH_TMP $SUBDIR || die "Unable to create tmp dir."
+mkdir $RHASH_TMP || die "Unable to create tmp dir."
+cp "$SCRIPT_DIR/test1K.data" $RHASH_TMP/test1K.data
 cd "$RHASH_TMP"
-cp "$SCRIPT_DIR/test1K.data" test1K.data
-FILE_A=dir1/a.txt
-printf "a" > $FILE_A
 
 # get the list of supported hash options
 HASHOPT="`$rhash --list-hashes|sed 's/ .*$//;/[^23]-/s/-\([0-9R]\)/\1/'|tr A-Z a-z`"
@@ -207,14 +204,13 @@ TEST_EXPECTED="(message) 1 E8B7BE43 5c334qy BTAXLOOA6G3KQMODTHRGS5ZGME hvfkN/qlp
 check "$TEST_RESULT" "$TEST_EXPECTED"
 
 new_test "test %u modifier:           "
-cp $FILE_A "dir1/=@+.txt"
+mkdir dir1 && printf "a" > "dir1/=@+.txt"
 TEST_RESULT=$( $rhash -p '%uf %Uf %up %Up %uxc %uxC %ubc %ubC\n' "dir1/=@+.txt" )
 TEST_EXPECTED="%3d%40%2b.txt %3D%40%2B.txt dir1%2f%3d%40%2b.txt dir1%2F%3D%40%2B.txt e8b7be43 E8B7BE43 5c334qy 5C334QY"
 check "$TEST_RESULT" "$TEST_EXPECTED" .
 TEST_RESULT=$( $rhash -p '%uBc %UBc %Bc %u@c %U@c\n' -m "a" )
 TEST_EXPECTED="6Le%2bQw%3d%3d 6Le%2BQw%3D%3D 6Le+Qw== %e8%b7%beC %E8%B7%BEC"
 check "$TEST_RESULT" "$TEST_EXPECTED"
-rm -f "dir1/=@+.txt"
 
 new_test "test special characters:    "
 TEST_RESULT=$( $rhash -p '\63\1\277\x0f\x1\t\\ \x34\r' -m "" )
@@ -252,7 +248,9 @@ TEST_RESULT=$( $rhash --simple -a test1K.data | $rhash -vc - 2>/dev/null | grep
 match "$TEST_RESULT" "^test1K.data *OK"
 
 new_test "test checking magnet link:  "
-TEST_RESULT=$( $rhash --magnet -a test1K.data | $rhash -vc - 2>&1 | grep test1K.data )
+# also test that '--check' verifies files in the current directory
+mkdir magnet_dir && $rhash --magnet -a test1K.data > magnet_dir/t.magnet
+TEST_RESULT=$( $rhash -vc magnet_dir/t.magnet 2>&1 | grep test1K.data )
 TEST_EXPECTED="^test1K.data *OK"
 match "$TEST_RESULT" "$TEST_EXPECTED"
 
@@ -283,6 +281,20 @@ TEST_RESULT=$( $rhash --simple --embed-crc --embed-crc-delimiter=_ 'test.data' 2
 check "$TEST_RESULT" "d3d99e8b  test_[D3D99E8B].data"
 rm 'test_[D3D99E8B].data' 'test_[D3D99E8C].data'
 
+new_test "test checking recursively:  "
+mkdir -p check/a && cp test1K.data check/a/b.data
+echo "a/b.data B70B4C26" > check/b.sfv
+TEST_RESULT=$( $rhash -Crc check/ | grep b.data )
+match "$TEST_RESULT" "^a/b.data *OK" .
+echo "B70B4C26" > check/a/b.data.crc32
+TEST_RESULT=$( $rhash --crc-accept=.crc32 -Crc check/a | grep "data.*OK" )
+match "$TEST_RESULT" "^check/a.b.data *OK" .
+# test that hash-files specified explicitly by command line are checked
+# in the current directory even with '--recursive' option
+echo "test1K.data B70B4C26" > check/t.sfv
+TEST_RESULT=$( $rhash -Crc check/t.sfv | grep "data.*OK" )
+match "$TEST_RESULT" "^test1K.data *OK"
+
 new_test "test wrong sums detection:  "
 $rhash -p '%c\n%m\n%e\n%h\n%g\n%t\n%a\n%w\n' -m WRONG > t.sum
 TEST_RESULT=$( $rhash -vc t.sum 2>&1 | grep 'OK' )
@@ -290,8 +302,7 @@ check "$TEST_RESULT" ""
 rm t.sum
 
 new_test "test *accept options:       "
-rm -rf test_dir/
-mkdir -p test_dir && touch test_dir/file.txt test_dir/file.bin
+mkdir test_dir && touch test_dir/file.txt test_dir/file.bin
 # correctly handle MIGW posix path conversion
 echo "$MSYSTEM" | grep -q '^MINGW[36][24]' && SLASH=// || SLASH="/"
 # test also --path-separator option
@@ -301,7 +312,6 @@ TEST_RESULT=$( $rhash -rC --simple --accept=.txt --path-separator=\\ test_dir )
 check "$TEST_RESULT" "00000000  test_dir\\file.txt" .
 TEST_RESULT=$( $rhash -rc --crc-accept=.bin test_dir 2>/dev/null | sed -n '/Verifying/s/-//gp' )
 match "$TEST_RESULT" "( Verifying test_dir.file\\.bin )"
-rm -rf test_dir/
 
 new_test "test ignoring of log files: "
 touch t1.out t2.out