diff --git a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/InferReactiveScopeVariables.ts b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/InferReactiveScopeVariables.ts
index b7f87cdd36..aeaccab381 100644
--- a/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/InferReactiveScopeVariables.ts
+++ b/compiler/packages/babel-plugin-react-forget/src/ReactiveScopes/InferReactiveScopeVariables.ts
@@ -9,7 +9,6 @@ import { Environment } from "../HIR";
 import {
   HIRFunction,
   Identifier,
-  IdentifierId,
   Instruction,
   makeInstructionId,
   Place,
@@ -17,8 +16,10 @@ import {
 } from "../HIR/HIR";
 import {
   doesPatternContainSpreadElement,
+  eachInstructionLValue,
   eachInstructionOperand,
   eachPatternOperand,
+  eachTerminalOperand,
 } from "../HIR/visitors";
 import DisjointSet from "../Utils/DisjointSet";
 import { assertExhaustive } from "../Utils/utils";
@@ -80,6 +81,27 @@ import { assertExhaustive } from "../Utils/utils";
  * ```
  */
 export function inferReactiveScopeVariables(fn: HIRFunction): void {
+  // First reset any scopes that may have been created from inner functions
+  for (const [, block] of fn.body.blocks) {
+    for (const phi of block.phis) {
+      phi.id.scope = null;
+      for (const [, operand] of phi.operands) {
+        operand.scope = null;
+      }
+    }
+    for (const instr of block.instructions) {
+      for (const lvalue of eachInstructionLValue(instr)) {
+        lvalue.identifier.scope = null;
+      }
+      for (const operand of eachInstructionOperand(instr)) {
+        operand.identifier.scope = null;
+      }
+    }
+    for (const operand of eachTerminalOperand(block.terminal)) {
+      operand.identifier.scope = null;
+    }
+  }
+
   /*
    * Represents the set of reactive scopes as disjoint sets of identifiers
    * that mutate together.
@@ -189,10 +211,6 @@ export function findDisjointMutableValues(
   fn: HIRFunction
 ): DisjointSet<Identifier> {
   const scopeIdentifiers = new DisjointSet<Identifier>();
-  const declarations: Map<IdentifierId, Place> | null = fn.env.config
-    .enableForest
-    ? new Map()
-    : null;
   for (const [_, block] of fn.body.blocks) {
     /*
      * If a phi is mutated after creation, then we need to alias all of its operands such that they
@@ -221,14 +239,7 @@ export function findDisjointMutableValues(
       if (range.end > range.start + 1 || mayAllocate(fn.env, instr)) {
         operands.push(instr.lvalue!.identifier);
       }
-      if (instr.value.kind === "DeclareLocal") {
-        if (declarations !== null) {
-          declarations.set(
-            instr.value.lvalue.place.identifier.id,
-            instr.value.lvalue.place
-          );
-        }
-      } else if (
+      if (
         instr.value.kind === "StoreLocal" ||
         instr.value.kind === "StoreContext"
       ) {
@@ -244,27 +255,6 @@ export function findDisjointMutableValues(
         ) {
           operands.push(instr.value.value.identifier);
         }
-        if (declarations !== null) {
-          const declaration = declarations.get(
-            instr.value.lvalue.place.identifier.id
-          );
-          if (declaration !== undefined) {
-            declaration.identifier.mutableRange.end = makeInstructionId(
-              Math.max(
-                declaration.identifier.mutableRange.end,
-                instr.value.lvalue.place.identifier.mutableRange.end
-              )
-            );
-            instr.value.lvalue.place.identifier.mutableRange.start =
-              makeInstructionId(
-                Math.min(
-                  declaration.identifier.mutableRange.start,
-                  instr.value.lvalue.place.identifier.mutableRange.start
-                )
-              );
-            operands.push(declaration.identifier);
-          }
-        }
       } else if (instr.value.kind === "Destructure") {
         for (const place of eachPatternOperand(instr.value.lvalue.pattern)) {
           if (
diff --git a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/repro-mutable-range-shared-inner-outer-function.expect.md b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/repro-mutable-range-shared-inner-outer-function.expect.md
index 3c9eb66f5f..cb5f23541a 100644
--- a/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/repro-mutable-range-shared-inner-outer-function.expect.md
+++ b/compiler/packages/babel-plugin-react-forget/src/__tests__/fixtures/compiler/repro-mutable-range-shared-inner-outer-function.expect.md
@@ -34,34 +34,36 @@ export const FIXTURE_ENTRYPOINT = {
 import { unstable_useMemoCache as useMemoCache } from "react"; // @enableAssumeHooksFollowRulesOfReact @enableTransitivelyFreezeFunctionExpressions
 let cond = true;
 function Component(props) {
-  const $ = useMemoCache(1);
+  const $ = useMemoCache(2);
+  let a;
+  let b;
   let t0;
   if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
-    t0 = Symbol.for("react.early_return_sentinel");
-    bb8: {
-      let a;
-      let b;
-      const f = () => {
-        if (cond) {
-          a = {};
-          b = [];
-        } else {
-          a = {};
-          b = [];
-        }
-        a.property = true;
-        b.push(false);
-      };
-      t0 = <div onClick={f} />;
-      break bb8;
-    }
+    t0 = () => {
+      if (cond) {
+        a = {};
+        b = [];
+      } else {
+        a = {};
+        b = [];
+      }
+
+      a.property = true;
+      b.push(false);
+    };
     $[0] = t0;
   } else {
     t0 = $[0];
   }
-  if (t0 !== Symbol.for("react.early_return_sentinel")) {
-    return t0;
+  const f = t0;
+  let t1;
+  if ($[1] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = <div onClick={f} />;
+    $[1] = t1;
+  } else {
+    t1 = $[1];
   }
+  return t1;
 }
 
 export const FIXTURE_ENTRYPOINT = {