diff --git a/autoload/gitgutter.vim b/autoload/gitgutter.vim
index 82d8b67..e9dcc15 100644
--- a/autoload/gitgutter.vim
+++ b/autoload/gitgutter.vim
@@ -56,6 +56,8 @@ endfunction
 
 
 function! gitgutter#handle_diff(diff)
+  call setbufvar(gitgutter#utility#bufnr(), 'gitgutter_tracked', 1)
+
   call gitgutter#hunk#set_hunks(gitgutter#diff#parse_diff(a:diff))
   let modified_lines = gitgutter#diff#process_hunks(gitgutter#hunk#hunks())
 
diff --git a/autoload/gitgutter/diff.vim b/autoload/gitgutter/diff.vim
index c5b875c..ef9af83 100644
--- a/autoload/gitgutter/diff.vim
+++ b/autoload/gitgutter/diff.vim
@@ -123,10 +123,6 @@ function! gitgutter#diff#run_diff(realtime, preserve_full_diff)
     endif
   end
 
-  if !tracked
-    call setbufvar(bufnr, 'gitgutter_tracked', 1)
-  endif
-
   if g:gitgutter_async && has('nvim') && !a:preserve_full_diff
     let cmd = gitgutter#utility#command_in_directory_of_file(cmd)
     " Note that when `cmd` doesn't produce any output, i.e. the diff is empty,
diff --git a/test/testUntrackedFileSquareBracketsWithinRepo.vim b/test/testUntrackedFileSquareBracketsWithinRepo.vim
new file mode 100644
index 0000000..b1fd48a
--- /dev/null
+++ b/test/testUntrackedFileSquareBracketsWithinRepo.vim
@@ -0,0 +1,10 @@
+source helper.vim
+
+let tmpfile = '[un]trackedFileWithinRepo.tmp'
+call system('touch '.tmpfile)
+execute 'edit '.tmpfile
+normal ggo*
+doautocmd CursorHold
+call DumpSigns('untrackedFileSquareBracketsWithinRepo')
+
+call system('rm '.tmpfile)
diff --git a/test/testUntrackedFileWithinRepo.vim b/test/testUntrackedFileWithinRepo.vim
index cbca9e7..4fdd48e 100644
--- a/test/testUntrackedFileWithinRepo.vim
+++ b/test/testUntrackedFileWithinRepo.vim
@@ -3,6 +3,8 @@ source helper.vim
 let tmpfile = 'untrackedFileWithinRepo.tmp'
 call system('touch '.tmpfile)
 execute 'edit '.tmpfile
+normal ggo*
+doautocmd CursorHold
 call DumpSigns('untrackedFileWithinRepo')
 
 call system('rm '.tmpfile)
diff --git a/test/untrackedFileSquareBracketsWithinRepo.expected b/test/untrackedFileSquareBracketsWithinRepo.expected
new file mode 100644
index 0000000..aa8cd86
--- /dev/null
+++ b/test/untrackedFileSquareBracketsWithinRepo.expected
@@ -0,0 +1,2 @@
+
+--- Signs ---