diff --git a/include/libtorrent/torrent.hpp b/include/libtorrent/torrent.hpp
index 00c96aa6f..3cc602bcc 100644
--- a/include/libtorrent/torrent.hpp
+++ b/include/libtorrent/torrent.hpp
@@ -563,6 +563,20 @@ namespace libtorrent
 #endif
 		}
 
+		void peer_lost(bitfield const& bits)
+		{
+			if (has_picker())
+			{
+				m_picker->dec_refcount(bits);
+			}
+#ifdef TORRENT_DEBUG
+			else
+			{
+				TORRENT_ASSERT(is_seed());
+			}
+#endif
+		}
+
 		void peer_lost(int index)
 		{
 			if (has_picker())
diff --git a/src/peer_connection.cpp b/src/peer_connection.cpp
index 8e2786554..b49b129b7 100644
--- a/src/peer_connection.cpp
+++ b/src/peer_connection.cpp
@@ -1864,6 +1864,14 @@ namespace libtorrent
 			return;
 		}
 
+		if (m_bitfield_received)
+		{
+			// if we've already received a bitfield message
+			// we first need to count down all the pieces
+			// we believe the peer has first
+			t->peer_lost(bits);
+		}
+
 		m_bitfield_received = true;
 
 		// if we don't have metadata yet
@@ -1909,25 +1917,7 @@ namespace libtorrent
 		// peer has
 		// if we're a seed, we don't keep track of piece availability
 		bool interesting = false;
-		if (!t->is_upload_only())
-		{
-			t->peer_has(bits);
-
-			for (int i = 0; i < (int)m_have_piece.size(); ++i)
-			{
-				bool have = bits[i];
-				if (have && !m_have_piece[i])
-				{
-					if (!t->have_piece(i) && t->picker().piece_priority(i) != 0)
-						interesting = true;
-				}
-				else if (!have && m_have_piece[i])
-				{
-					// this should probably not be allowed
-					t->peer_lost(i);
-				}
-			}
-		}
+		t->peer_has(bits);
 
 		m_have_piece = bits;
 		m_num_pieces = num_pieces;