diff --git a/app/services/inline_uploads.rb b/app/services/inline_uploads.rb
index 35e1f0b4fdf..f16f4e5110a 100644
--- a/app/services/inline_uploads.rb
+++ b/app/services/inline_uploads.rb
@@ -34,7 +34,7 @@ class InlineUploads
         if (actual_link = (node.attributes["href"]&.value || node.attributes["src"]&.value))
           link_occurences << { link: actual_link, is_valid: true }
         elsif node.name != "p"
-          link_occurences << { link: actual_link, is_valid: false }
+          link_occurences << { link: seen_link, is_valid: false }
         end
       end
     end
@@ -219,8 +219,8 @@ class InlineUploads
   end
 
   def self.match_img(markdown, external_src: false)
-    markdown.scan(/(([ ]*)<(?!img)[^<>]+\/?>)?([\r\n]*)(([ ]*)<img ([^>\n]+)>([ ]*))([\r\n]*)/i) do |match|
-      node = Nokogiri::HTML::fragment(match[3].strip).children[0]
+    markdown.scan(/(<(?!img)[^<>]+\/?>)?(\s*)(<img [^>\n]+>)/i) do |match|
+      node = Nokogiri::HTML::fragment(match[2].strip).children[0]
       src =  node.attributes["src"]&.value
 
       if src && (matched_uploads(src).present? || external_src)
@@ -229,36 +229,10 @@ class InlineUploads
         height = node.attributes["height"]&.value.to_i
         title = node.attributes["title"]&.value
         text = "#{text}|#{width}x#{height}" if width > 0 && height > 0
-        after_html_tag = match[0].present?
+        spaces_before = match[1].present? ? match[1][/ +$/].size : 0
+        replacement = +"#{" " * spaces_before}![#{text}](#{PLACEHOLDER}#{title.present? ? " \"#{title}\"" : ""})"
 
-        spaces_before =
-          if after_html_tag && !match[0].end_with?("/>")
-            (match[4].length > 0 ? match[4] : "  ")
-          else
-            ""
-          end
-
-        replacement = +"#{spaces_before}![#{text}](#{PLACEHOLDER}#{title.present? ? " \"#{title}\"" : ""})"
-
-        if after_html_tag && (num_newlines = match[2].length) <= 1
-          replacement.prepend("\n" * (num_newlines == 0 ? 2 : 1))
-        end
-
-        if after_html_tag && !match[0].end_with?("/>") && (num_newlines = match[7].length) <= 1
-          replacement += ("\n" * (num_newlines == 0 ? 2 : 1))
-        end
-
-        match[3].strip! if !after_html_tag
-
-        if (match[1].nil? || match[1].length < 4)
-          if (match[4].nil? || match[4].length < 4)
-            yield(match[3], src, replacement, $~.offset(0)[0]) if block_given?
-          else
-            yield(match[3], src, match[3].sub(src, PATH_PLACEHOLDER), $~.offset(0)[0]) if block_given?
-          end
-        else
-          yield(match[3], src, match[3].sub(src, PATH_PLACEHOLDER), $~.offset(0)[0]) if block_given?
-        end
+        yield(match[2], src, replacement, $~.offset(0)[0]) if block_given?
       end
     end
   end
diff --git a/spec/jobs/pull_hotlinked_images_spec.rb b/spec/jobs/pull_hotlinked_images_spec.rb
index a96e476ce73..dd194f3b897 100644
--- a/spec/jobs/pull_hotlinked_images_spec.rb
+++ b/spec/jobs/pull_hotlinked_images_spec.rb
@@ -77,7 +77,7 @@ describe Jobs::PullHotlinkedImages do
       expect(post.reload.raw).to eq(<<~RAW.chomp)
       <h1></h1>
                                 <a href="https://somelink.com">
-                                    <img alt="somelink" src="#{upload.short_path}" />
+                                    ![somelink](#{upload.short_url})
                                 </a>
       RAW
     end
diff --git a/spec/services/inline_uploads_spec.rb b/spec/services/inline_uploads_spec.rb
index 0bd1e6cb581..ea55a82352b 100644
--- a/spec/services/inline_uploads_spec.rb
+++ b/spec/services/inline_uploads_spec.rb
@@ -329,6 +329,14 @@ RSpec.describe InlineUploads do
 
         <img src="#{upload.url}" width="5" height="4">
         <img src="#{upload.url}" width="5px" height="auto">
+
+        `<img src="#{upload.url}" alt="image inside code quotes">`
+
+        ```
+        <img src="#{upload.url}" alt="image inside code fences">
+        ```
+
+            <img src="#{upload.url}" alt="image inside code block">
         MD
 
         expect(InlineUploads.process(md)).to eq(<<~MD)
@@ -346,6 +354,14 @@ RSpec.describe InlineUploads do
 
         ![|5x4](#{upload.short_url})
         ![](#{upload.short_url})
+
+        `<img src="#{upload.url}" alt="image inside code quotes">`
+
+        ```
+        <img src="#{upload.url}" alt="image inside code fences">
+        ```
+
+            <img src="#{upload.url}" alt="image inside code block">
         MD
       end
 
@@ -381,7 +397,7 @@ RSpec.describe InlineUploads do
         expect(InlineUploads.process(md)).to eq(<<~MD)
         <h1></h1>
                         <a href="http://somelink.com">
-                          <img src="#{upload2.short_path}" alt="test" width="500" height="500">
+                          ![test|500x500](#{upload2.short_url})
                         </a>
 
                         <a href="http://somelink.com">
@@ -391,7 +407,7 @@ RSpec.describe InlineUploads do
 
         md = "<h1></h1>\r\n<a href=\"http://somelink.com\">\r\n        <img src=\"#{upload.url}\" alt=\"test\" width=\"500\" height=\"500\">\r\n</a>"
 
-        expect(InlineUploads.process(md)).to eq("<h1></h1>\r\n<a href=\"http://somelink.com\">\r\n        <img src=\"#{upload.short_path}\" alt=\"test\" width=\"500\" height=\"500\">\r\n</a>")
+        expect(InlineUploads.process(md)).to eq("<h1></h1>\r\n<a href=\"http://somelink.com\">\r\n        ![test|500x500](#{upload.short_url})\r\n</a>")
       end
 
       it "should correctly update image sources within anchor or paragraph tags" do
@@ -423,40 +439,27 @@ RSpec.describe InlineUploads do
 
         expect(InlineUploads.process(md)).to eq(<<~MD)
         <a href="http://somelink.com">
-
           ![test|500x500](#{upload.short_url})
-
         </a>
 
         <p>
-
           ![test](#{upload2.short_url})
-
         </p>
 
-        <a href="http://somelink.com">
+        <a href="http://somelink.com">![test|500x500](#{upload3.short_url})</a>
 
-          ![test|500x500](#{upload3.short_url})
-
-        </a>
-
-        <a href="http://somelink.com">
-
-          ![test|500x500](#{upload.short_url})
-
-        </a>
+        <a href="http://somelink.com">  ![test|500x500](#{upload.short_url})  </a>
 
         <a href="http://somelink.com">
 
 
-          ![test|500x500](#{upload.short_url})
+        ![test|500x500](#{upload.short_url})
 
         </a>
 
         <p>Test ![test|500x500](#{upload2.short_url})</p>
 
         <hr/>
-
         ![test|500x500](#{upload2.short_url})
         MD
       end