diff --git a/compiler/src/dotty/tools/dotc/ast/Desugar.scala b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
index 4058e1b5cdc3..d311ac834450 100644
--- a/compiler/src/dotty/tools/dotc/ast/Desugar.scala
+++ b/compiler/src/dotty/tools/dotc/ast/Desugar.scala
@@ -75,7 +75,7 @@ object desugar {
             else {
               def msg =
                 s"no matching symbol for ${tp.symbol.showLocated} in ${defctx.owner} / ${defctx.effectiveScope}"
-              if (ctx.reporter.errorsReported) new ErrorType(msg)
+              if (ctx.reporter.errorsReported) ErrorType(msg)
               else throw new java.lang.Error(msg)
             }
           case _ =>
diff --git a/compiler/src/dotty/tools/dotc/core/Contexts.scala b/compiler/src/dotty/tools/dotc/core/Contexts.scala
index 2e7979a98c25..97624aab777a 100644
--- a/compiler/src/dotty/tools/dotc/core/Contexts.scala
+++ b/compiler/src/dotty/tools/dotc/core/Contexts.scala
@@ -24,6 +24,7 @@ import Implicits.ContextualImplicits
 import config.Settings._
 import config.Config
 import reporting._
+import reporting.diagnostic.Message
 import collection.mutable
 import collection.immutable.BitSet
 import printing._
@@ -636,6 +637,12 @@ object Contexts {
      */
     private[dotty] var unsafeNonvariant: RunId = NoRunId
 
+    /** A map from ErrorType to associated message computation. We use this map
+     *  instead of storing message computations directly in ErrorTypes in order
+     *  to avoid space leaks - the message computation usually captures a context.
+     */
+    private[core] val errorTypeMsg = mutable.Map[ErrorType, () => Message]()
+
     // Phases state
 
     private[core] var phasesPlan: List[List[Phase]] = _
@@ -662,6 +669,7 @@ object Contexts {
 
     def reset() = {
       for ((_, set) <- uniqueSets) set.clear()
+      errorTypeMsg.clear()
     }
 
     // Test that access is single threaded
diff --git a/compiler/src/dotty/tools/dotc/core/SymDenotations.scala b/compiler/src/dotty/tools/dotc/core/SymDenotations.scala
index 3a6eaef14a4b..bfaa12729090 100644
--- a/compiler/src/dotty/tools/dotc/core/SymDenotations.scala
+++ b/compiler/src/dotty/tools/dotc/core/SymDenotations.scala
@@ -1904,7 +1904,7 @@ object SymDenotations {
         case denot: ClassDenotation =>
           ClassInfo(denot.owner.thisType, denot.classSymbol, Nil, EmptyScope)
         case _ =>
-          new ErrorType(errMsg)
+          ErrorType(errMsg)
       }
       denot.privateWithin = NoSymbol
     }
diff --git a/compiler/src/dotty/tools/dotc/core/Symbols.scala b/compiler/src/dotty/tools/dotc/core/Symbols.scala
index bf4eec0f1649..b5c3baac2cf1 100644
--- a/compiler/src/dotty/tools/dotc/core/Symbols.scala
+++ b/compiler/src/dotty/tools/dotc/core/Symbols.scala
@@ -298,7 +298,7 @@ trait Symbols { this: Context =>
   def newSkolem(tp: Type) = newSymbol(defn.RootClass, nme.SKOLEM, SyntheticArtifact | Permanent, tp)
 
   def newErrorSymbol(owner: Symbol, name: Name, msg: => Message) = {
-    val errType = new ErrorType(msg)
+    val errType = ErrorType(msg)
     newSymbol(owner, name, SyntheticArtifact,
         if (name.isTypeName) TypeAlias(errType) else errType)
   }
@@ -348,9 +348,9 @@ trait Symbols { this: Context =>
           info = completer,
           privateWithin = ttmap1.mapOwner(odenot.privateWithin), // since this refers to outer symbols, need not include copies (from->to) in ownermap here.
           annotations = odenot.annotations)
-
       }
 
+      copies.foreach(_.ensureCompleted()) // avoid memory leak
       copies
     }
 
diff --git a/compiler/src/dotty/tools/dotc/core/TyperState.scala b/compiler/src/dotty/tools/dotc/core/TyperState.scala
index 8735a1fe8130..051fb20ee02c 100644
--- a/compiler/src/dotty/tools/dotc/core/TyperState.scala
+++ b/compiler/src/dotty/tools/dotc/core/TyperState.scala
@@ -11,6 +11,7 @@ import printing.{Showable, Printer}
 import printing.Texts._
 import config.Config
 import collection.mutable
+import java.lang.ref.WeakReference
 
 class TyperState(r: Reporter) extends DotClass with Showable {
 
@@ -143,8 +144,7 @@ extends TyperState(r) {
       if (targetState.constraint eq previousConstraint) constraint
       else targetState.constraint & constraint
     constraint foreachTypeVar { tvar =>
-      if (tvar.owningState eq this)
-        tvar.owningState = targetState
+      if (tvar.owningState.get eq this) tvar.owningState = new WeakReference(targetState)
     }
     targetState.ephemeral |= ephemeral
     targetState.gc()
@@ -157,7 +157,7 @@ extends TyperState(r) {
     constraint foreachTypeVar { tvar =>
       if (!tvar.inst.exists) {
         val inst = instType(tvar)
-        if (inst.exists && (tvar.owningState eq this)) {
+        if (inst.exists && (tvar.owningState.get eq this)) {
           tvar.inst = inst
           val lam = tvar.origin.binder
           if (constraint.isRemovable(lam)) toCollect += lam
diff --git a/compiler/src/dotty/tools/dotc/core/Types.scala b/compiler/src/dotty/tools/dotc/core/Types.scala
index 8c6474ae0e55..ba508a468f19 100644
--- a/compiler/src/dotty/tools/dotc/core/Types.scala
+++ b/compiler/src/dotty/tools/dotc/core/Types.scala
@@ -36,6 +36,7 @@ import Flags.FlagSet
 import language.implicitConversions
 import scala.util.hashing.{ MurmurHash3 => hashing }
 import config.Printers.{core, typr, cyclicErrors}
+import java.lang.ref.WeakReference
 
 object Types {
 
@@ -3175,12 +3176,18 @@ object Types {
   final class TypeVar(val origin: TypeParamRef, creatorState: TyperState, val bindingTree: untpd.Tree, val owner: Symbol) extends CachedProxyType with ValueType {
 
     /** The permanent instance type of the variable, or NoType is none is given yet */
-    private[core] var inst: Type = NoType
+    private[this] var myInst: Type = NoType
+
+    private[core] def inst = myInst
+    private[core] def inst_=(tp: Type) = {
+      myInst = tp
+      if (tp.exists) owningState = null // no longer needed; null out to avoid a memory leak
+    }
 
     /** The state owning the variable. This is at first `creatorState`, but it can
      *  be changed to an enclosing state on a commit.
      */
-    private[core] var owningState = creatorState
+    private[core] var owningState = new WeakReference(creatorState)
 
     /** The instance type of this variable, or NoType if the variable is currently
      *  uninstantiated
@@ -3198,7 +3205,7 @@ object Types {
     private def instantiateWith(tp: Type)(implicit ctx: Context): Type = {
       assert(tp ne this, s"self instantiation of ${tp.show}, constraint = ${ctx.typerState.constraint.show}")
       typr.println(s"instantiating ${this.show} with ${tp.show}")
-      if ((ctx.typerState eq owningState) && !ctx.typeComparer.subtypeCheckInProgress)
+      if ((ctx.typerState eq owningState.get) && !ctx.typeComparer.subtypeCheckInProgress)
         inst = tp
       ctx.typerState.constraint = ctx.typerState.constraint.replace(origin, tp)
       tp
@@ -3546,11 +3553,24 @@ object Types {
    */
   abstract class FlexType extends UncachedGroundType with ValueType
 
-  class ErrorType(_msg: => Message) extends FlexType {
-    def msg = _msg
+  class ErrorType private[Types] () extends FlexType {
+    def msg(implicit ctx: Context): Message =
+      ctx.errorTypeMsg.get(this) match {
+        case Some(msgFun) => msgFun()
+        case None => "error message from previous run no longer available"
+      }
+  }
+  object ErrorType {
+    def apply(msg: => Message)(implicit ctx: Context): ErrorType = {
+      val et = new ErrorType
+      ctx.base.errorTypeMsg(et) = () => msg
+      et
+    }
   }
 
-  object UnspecifiedErrorType extends ErrorType("unspecified error")
+  object UnspecifiedErrorType extends ErrorType() {
+    override def msg(implicit ctx: Context): Message = "unspecified error"
+  }
 
   /* Type used to track Select nodes that could not resolve a member and their qualifier is a scala.Dynamic. */
   object TryDynamicCallType extends FlexType
diff --git a/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala b/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
index 0cb4f3e208f2..c5f5d879178c 100644
--- a/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
+++ b/compiler/src/dotty/tools/dotc/transform/LambdaLift.scala
@@ -202,6 +202,7 @@ class LambdaLift extends MiniPhase with IdentityDenotTransformer { thisTransform
         ctx.debuglog(i"mark free: ${sym.showLocated} with owner ${sym.maybeOwner} marked free in $enclosure")
         val intermediate =
           if (enclosure.is(PackageClass)) enclosure
+          else if (enclosure.isConstructor) markFree(sym, enclosure.owner.enclosure)
           else markFree(sym, enclosure.enclosure)
         narrowLiftedOwner(enclosure, intermediate orElse sym.enclosingClass)
         if (!intermediate.isRealClass || enclosure.isConstructor) {
diff --git a/compiler/src/dotty/tools/dotc/typer/ErrorReporting.scala b/compiler/src/dotty/tools/dotc/typer/ErrorReporting.scala
index d0ab39a988c4..fda4f05753e7 100644
--- a/compiler/src/dotty/tools/dotc/typer/ErrorReporting.scala
+++ b/compiler/src/dotty/tools/dotc/typer/ErrorReporting.scala
@@ -23,7 +23,7 @@ object ErrorReporting {
 
   def errorType(msg: => Message, pos: Position)(implicit ctx: Context): ErrorType = {
     ctx.error(msg, pos)
-    new ErrorType(msg)
+    ErrorType(msg)
   }
 
   def cyclicErrorMsg(ex: CyclicReference)(implicit ctx: Context) = {
diff --git a/tests/run/i2883.check b/tests/run/i2883.check
new file mode 100644
index 000000000000..8b137891791f
--- /dev/null
+++ b/tests/run/i2883.check
@@ -0,0 +1 @@
+
diff --git a/tests/run/i2883.scala b/tests/run/i2883.scala
new file mode 100644
index 000000000000..d42f715d7f0a
--- /dev/null
+++ b/tests/run/i2883.scala
@@ -0,0 +1,16 @@
+class Wrapper(val value: Int)
+
+abstract class Foo(val x: Int)
+
+class Test {
+  def foo(wrapper: Wrapper): Unit = {
+    new Foo(wrapper.value) {}
+  }
+}
+object Test extends App {
+  def foo(wrapper: Wrapper): Foo =
+    new Foo(wrapper.value) {}
+  def printFields(obj: Any) =
+    println(obj.getClass.getDeclaredFields.map(_.toString).sorted.deep.mkString("\n"))
+  printFields(foo(new Wrapper(1)))
+}