diff --git a/data/core/commands/core.lua b/data/core/commands/core.lua
index abbe7cb4..9b348262 100644
--- a/data/core/commands/core.lua
+++ b/data/core/commands/core.lua
@@ -89,17 +89,22 @@ command.add(nil, {
     local view = core.active_view
     if view.doc and view.doc.abs_filename then
       local dirname, filename = view.doc.abs_filename:match("(.*)[/\\](.+)$")
-      core.command_view:set_text(core.normalize_to_project_dir(dirname) .. PATHSEP)
+      if dirname then
+        dirname = core.normalize_to_project_dir(dirname)
+        local text = dirname == core.project_dir and "" or common.home_encode(dirname) .. PATHSEP
+        core.command_view:set_text(text)
+      end
     end
     core.command_view:enter("Open File", function(text)
-      core.root_view:open_doc(core.open_doc(common.home_expand(text)))
+      local filename = system.absolute_path(common.home_expand(text))
+      core.root_view:open_doc(core.open_doc(filename))
     end, function (text)
       return common.home_encode_list(common.path_suggest(common.home_expand(text)))
     end, nil, function(text)
       local path_stat, err = system.get_file_info(common.home_expand(text))
       if err then
         core.error("Cannot open file %q: %q", text, err)
-      elseif path_stat.type == 'dir' then 
+      elseif path_stat.type == 'dir' then
         core.error("Cannot open %q, is a folder", text)
       else
         return true
diff --git a/data/core/common.lua b/data/core/common.lua
index 05f91111..e8a989df 100644
--- a/data/core/common.lua
+++ b/data/core/common.lua
@@ -206,7 +206,9 @@ end
 function common.home_encode(text)
   if HOME and string.find(text, HOME, 1, true) == 1 then
     local dir_pos = #HOME + 1
-    if string.find(text, PATHSEP, dir_pos, true) == dir_pos then
+    -- ensure we don't replace if the text is just "$HOME" or "$HOME/" so
+    -- it must have a "/" following the $HOME and some characters following.
+    if string.find(text, PATHSEP, dir_pos, true) == dir_pos and #text > dir_pos then
       return "~" .. text:sub(dir_pos)
     end
   end