diff --git a/src/storage.cpp b/src/storage.cpp
index 4e4e3e1c7..f74f35cbc 100755
--- a/src/storage.cpp
+++ b/src/storage.cpp
@@ -1613,11 +1613,17 @@ namespace libtorrent
 				m_unallocated_slots.push_back(i);
 			}
 
-			if (m_compact_mode || m_unallocated_slots.empty())
+			if (m_unallocated_slots.empty())
 			{
 				m_state = state_finished;
 				return true;
 			}
+
+			if (m_compact_mode)
+			{
+				m_state = state_create_files;
+				return false;
+			}
 		}
 
 		m_current_slot = 0;
@@ -1628,24 +1634,29 @@ namespace libtorrent
 /*
 	state chart:
 
-	check_fastresume()
-
-		|        |
-		|        v
-		|  +------------+
-		|  | full_check |
-		|  +------------+
-		|        |
-		|        v
-		|  +------------+   +--------------+
-		|  | allocating |-->| create_files |
-		|  +------------+   +--------------+
-		|        |                 |
-		|        v                 |
-		|     +----------+         |
-		+---->| finished |<--------+
-				+----------+
-
+   check_fastresume()  ----+
+                           |
+      |        |           |
+      |        v           |
+      |  +------------+    |
+      |  | full_check |    |
+      |  +------------+    |
+      |        |           |
+      |        v           |
+      |  +------------+    |
+      |  | allocating |    |
+      |  +------------+    |
+      |        |           |
+      |        v           |
+      |  +--------------+  |
+      |  | create_files |<-+
+      |  +--------------+  |
+      |        |           |
+      |        v           |
+      |     +----------+   |
+      +---->| finished |<--+
+            +----------+
+ 
 */
 
 
@@ -1662,18 +1673,12 @@ namespace libtorrent
 
 		if (m_state == state_allocating)
 		{
-			if (m_compact_mode)
+			if (m_compact_mode || m_unallocated_slots.empty())
 			{
-				m_state = state_finished;
+				m_state = state_create_files;
 				return std::make_pair(true, 1.f);
 			}
 		
-			if (m_unallocated_slots.empty())
-			{
-				m_state = state_finished;
-				return std::make_pair(true, 1.f);
-			}
-
 			if (int(m_unallocated_slots.size()) == m_info.num_pieces()
 				&& !m_fill_mode)
 			{