diff --git a/dist/fabric.js b/dist/fabric.js
index b4a92411e2d..2e7f015a3d7 100644
--- a/dist/fabric.js
+++ b/dist/fabric.js
@@ -11844,7 +11844,6 @@ fabric.PatternBrush = fabric.util.createClass(fabric.PencilBrush, /** @lends fab
       this.setCursor(this.defaultCursor);
       // clear selection and current transformation
       this._groupSelector = null;
-      this._currentTransform = null;
     }
   });
 
@@ -14245,13 +14244,6 @@ fabric.util.object.extend(fabric.StaticCanvas.prototype, /** @lends fabric.Stati
     _getLeftTopCoords: function() {
       return this.translateToOriginPoint(this.getCenterPoint(), 'left', 'top');
     },
-
-    /**
-    * Callback; invoked right before object is about to go from active to inactive
-    */
-    onDeselect: function() {
-      /* NOOP */
-    }
   });
 
 })();
@@ -25016,7 +25008,8 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
           leftOffset = this._getLeftOffset(),
           topOffset = this._getTopOffset(), top,
           boxStart, boxWidth, charBox, currentDecoration,
-          maxHeight, currentFill, lastFill;
+          maxHeight, currentFill, lastFill,
+          charSpacing = this._getWidthOfCharSpacing();
 
       for (var i = 0, len = this._textLines.length; i < len; i++) {
         heightOfLine = this.getHeightOfLine(i);
@@ -25064,7 +25057,7 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
         currentDecoration && currentFill && ctx.fillRect(
           leftOffset + lineLeftOffset + boxStart,
           top + this.offsets[type] * size + dy,
-          boxWidth,
+          boxWidth - charSpacing,
           this.fontSize / 15
         );
         topOffset += heightOfLine;
@@ -25976,18 +25969,19 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
         return this.cursorOffsetCache;
       }
       var lineLeftOffset,
-          lineIndex = 0,
-          charIndex = 0,
+          lineIndex,
+          charIndex,
           topOffset = 0,
           leftOffset = 0,
           boundaries,
           cursorPosition = this.get2DCursorLocation(position);
-      for (var i = 0; i < cursorPosition.lineIndex; i++) {
+      charIndex = cursorPosition.charIndex;
+      lineIndex = cursorPosition.lineIndex;
+      for (var i = 0; i < lineIndex; i++) {
         topOffset += this.getHeightOfLine(i);
       }
-
-      lineLeftOffset = this._getLineLeftOffset(cursorPosition.lineIndex);
-      var bound = this.__charBounds[cursorPosition.lineIndex][cursorPosition.charIndex];
+      lineLeftOffset = this._getLineLeftOffset(lineIndex);
+      var bound = this.__charBounds[lineIndex][charIndex];
       bound && (leftOffset = bound.left);
       if (this.charSpacing !== 0 && charIndex === this._textLines[lineIndex].length) {
         leftOffset -= this._getWidthOfCharSpacing();
@@ -26064,7 +26058,9 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
             boxEnd = this.__charBounds[endLine][endChar].left;
           }
           else {
-            boxEnd = this.__charBounds[endLine][endChar - 1].left + this.__charBounds[endLine][endChar - 1].width;
+            var charSpacing = this._getWidthOfCharSpacing();
+            boxEnd = this.__charBounds[endLine][endChar - 1].left
+              + this.__charBounds[endLine][endChar - 1].width - charSpacing;
           }
         }
         realLineHeight = lineHeight;
@@ -26164,10 +26160,9 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
       this.mouseMoveHandler = this.mouseMoveHandler.bind(this);
     },
 
-    onDeselect: function(options) {
+    onDeselect: function() {
       this.isEditing && this.exitEditing();
       this.selected = false;
-      fabric.Object.prototype.onDeselect.call(this, options);
     },
 
     /**
@@ -26208,13 +26203,13 @@ fabric.Image.filters.BaseFilter.fromObject = function(object, callback) {
      * @private
      */
     _initCanvasHandlers: function(canvas) {
-      canvas._mouseUpITextHandler = (function() {
+      canvas._mouseUpITextHandler = function() {
         if (canvas._iTextInstances) {
           canvas._iTextInstances.forEach(function(obj) {
             obj.__isMousedown = false;
           });
         }
-      }).bind(this);
+      };
       canvas.on('mouse:up', canvas._mouseUpITextHandler);
     },
 
@@ -27080,7 +27075,7 @@ fabric.util.object.extend(fabric.IText.prototype, /** @lends fabric.IText.protot
 
     this.__lastPointer = { };
 
-    this.on('mousedown', this.onMouseDown.bind(this));
+    this.on('mousedown', this.onMouseDown);
   },
 
   /**
@@ -27092,7 +27087,7 @@ fabric.util.object.extend(fabric.IText.prototype, /** @lends fabric.IText.protot
       return;
     }
     this.__newClickTime = +new Date();
-    var newPointer = this.canvas.getPointer(options.e);
+    var newPointer = options.pointer;
     if (this.isTripleClick(newPointer)) {
       this.fire('tripleclick', options);
       this._stopEvent(options.e);
@@ -27150,10 +27145,7 @@ fabric.util.object.extend(fabric.IText.prototype, /** @lends fabric.IText.protot
     if (!this.canvas || !this.editable || (options.e.button && options.e.button !== 1)) {
       return;
     }
-    var pointer = this.canvas.getPointer(options.e);
 
-    this.__mousedownX = pointer.x;
-    this.__mousedownY = pointer.y;
     this.__isMousedown = true;
 
     if (this.selected) {
@@ -27170,21 +27162,25 @@ fabric.util.object.extend(fabric.IText.prototype, /** @lends fabric.IText.protot
   },
 
   /**
-   * Initializes "mousedown" event handler
+   * Default event handler for the basic functionalities needed on mousedown:before
+   * can be overridden to do something different.
+   * Scope of this implementation is: verify the object is already selected when mousing down
    */
-  initMousedownHandler: function() {
-    this.on('mousedown', this._mouseDownHandler);
+  _mouseDownHandlerBefore: function(options) {
+    if (!this.canvas || !this.editable || (options.e.button && options.e.button !== 1)) {
+      return;
+    }
+    if (this === this.canvas._activeObject) {
+      this.selected = true;
+    }
   },
 
   /**
-   * detect if object moved
-   * @private
+   * Initializes "mousedown" event handler
    */
-  _isObjectMoved: function(e) {
-    var pointer = this.canvas.getPointer(e);
-
-    return this.__mousedownX !== pointer.x ||
-           this.__mousedownY !== pointer.y;
+  initMousedownHandler: function() {
+    this.on('mousedown', this._mouseDownHandler);
+    this.on('mousedown:before', this._mouseDownHandlerBefore);
   },
 
   /**
@@ -27200,7 +27196,9 @@ fabric.util.object.extend(fabric.IText.prototype, /** @lends fabric.IText.protot
    */
   mouseUpHandler: function(options) {
     this.__isMousedown = false;
-    if (!this.editable || this._isObjectMoved(options.e) || (options.e.button && options.e.button !== 1)) {
+    if (!this.editable ||
+      (options.transform && options.transform.actionPerformed) ||
+      (options.e.button && options.e.button !== 1)) {
       return;
     }