diff --git a/.gitignore b/.gitignore
index 9286baf4..60e940b4 100644
--- a/.gitignore
+++ b/.gitignore
@@ -20,3 +20,4 @@ bin
 
 *.db
 *.xlsx
+/gen
diff --git a/ethereumj-core/src/main/java/org/ethereum/serpent/SerpentCompiler.java b/ethereumj-core/src/main/java/org/ethereum/serpent/SerpentCompiler.java
index 1c9795eb..91f99390 100644
--- a/ethereumj-core/src/main/java/org/ethereum/serpent/SerpentCompiler.java
+++ b/ethereumj-core/src/main/java/org/ethereum/serpent/SerpentCompiler.java
@@ -81,8 +81,7 @@ public class SerpentCompiler {
             String labelNum = label.split("LABEL_")[1];
 
             labels.put(labelNum, i);
-
-            ++i;
+            --i;
         }
 
         // encode all ref occurrence