diff --git a/src/install/lockfile/Tree.rs b/src/install/lockfile/Tree.rs
index 66d3f9597a28..45696237fb26 100644
--- a/src/install/lockfile/Tree.rs
+++ b/src/install/lockfile/Tree.rs
@@ -649,6 +649,24 @@ impl Tree {
             return Ok(());
         }
 
+        // Below another copy of itself, a package's dependencies are already placed; laying
+        // them out again only re-nests what the levels in between shadow, which for a cycle
+        // through two versions (a@1 -> b@1 -> a@2 -> b@2 -> a@1 ...) never ends. npm stops
+        // here as well (linking to the copy above); bun.lock.rs skips these copies to match.
+        {
+            let trees = builder.list.items_tree();
+            let mut ancestor_id = self.id;
+            while ancestor_id != INVALID_ID {
+                let ancestor = &trees[ancestor_id as usize];
+                if (ancestor.dependency_id as usize) < builder.resolutions.len()
+                    && builder.resolutions[ancestor.dependency_id as usize] == parent_pkg_id
+                {
+                    return Ok(());
+                }
+                ancestor_id = ancestor.parent;
+            }
+        }
+
         builder.list.append(BuilderEntry {
             tree: Tree {
                 parent: self.id,
@@ -1106,6 +1124,16 @@ impl Tree {
             }
         }
 
+        // A bundled root's walk ends below the folder holding the bundling package, which is
+        // resolvable from inside it; a bundled dependency depending back on it would otherwise
+        // copy it into itself, and the copy's bundled dependencies bring it back, forever.
+        if (this.dependency_id as usize) < deps.len()
+            && builder.resolutions[this.dependency_id as usize] == package_id
+            && deps[this.dependency_id as usize].name_hash == target_name_hash
+        {
+            return Ok(HoistDependencyResult::Hoisted); // 1
+        }
+
         // place the dependency in the current tree
         Ok(HoistDependencyResult::Placement(Placement {
             id: this.id,
diff --git a/src/install/lockfile/bun.lock.rs b/src/install/lockfile/bun.lock.rs
index 2efb8de91097..ff2ffc856d7b 100644
--- a/src/install/lockfile/bun.lock.rs
+++ b/src/install/lockfile/bun.lock.rs
@@ -1817,6 +1817,22 @@ impl<T> PkgMap<T> {
     }
 }
 
+impl PkgMap<PackageID> {
+    /// Whether a folder on the way down to `pkg_path` holds `pkg_id` too. Each of those
+    /// folders is a key of its own; a prefix ending inside a scoped name matches nothing.
+    fn is_below_copy_of(&self, pkg_path: &[u8], pkg_id: PackageID) -> bool {
+        let mut end: usize = 0;
+        while let Some(i) = strings::index_of_char_usize(&pkg_path[end..], b'/') {
+            end += i;
+            if self.get(&pkg_path[..end]) == Some(&pkg_id) {
+                return true;
+            }
+            end += 1;
+        }
+        false
+    }
+}
+
 // const PkgMap = struct {};
 
 fn object_rows(expr: &Expr) -> &[JSON::E::PropertyJSON] {
@@ -3230,6 +3246,13 @@ pub(crate) fn parse_into_binary_lockfile(
                 continue;
             }
 
+            // A copy below another copy of its package has no node_modules of its own
+            // (`Tree::process_subtree`), so walking up from it finds the versions it sits
+            // under rather than the package's resolutions; the copy above binds those.
+            if pkg_map.is_below_copy_of(pkg_path, pkg_id) {
+                continue;
+            }
+
             // find resolutions. iterate up to root through the pkg path.
             let deps = pkg_deps[pkg_id as usize];
             'deps: for _dep_id in deps.begin()..deps.end() {
diff --git a/test/cli/install/hoist.test.ts b/test/cli/install/hoist.test.ts
index 12919c36b139..b5b480b60ab7 100644
--- a/test/cli/install/hoist.test.ts
+++ b/test/cli/install/hoist.test.ts
@@ -1,5 +1,6 @@
-import { afterAll, beforeAll, test } from "bun:test";
-import { VerdaccioRegistry, bunEnv, runBunInstall } from "harness";
+import { afterAll, beforeAll, expect, test } from "bun:test";
+import { VerdaccioRegistry, bunEnv, bunExe, runBunInstall } from "harness";
+import { join } from "node:path";
 
 const registry = new VerdaccioRegistry();
 
@@ -28,3 +29,189 @@ test("should handle resolving optional peer from multiple instances of same pack
   // this shouldn't hit an assertion
   await runBunInstall(bunEnv, packageDir);
 });
+
+// The hoist-*-cycle-* fixtures are described in registry/packages/create-hoist-cycle-packages.ts.
+//
+// These graphs can only be laid out by nesting: every package in the cycle conflicts with the
+// version of its name one level up, so each copy used to get another copy nested below it and
+// `bun install` never finished. The tree now ends at the first copy of a package that is nested
+// below another copy of itself; that copy gets no node_modules of its own, so its dependency in
+// the cycle resolves to the conflicting version next to it (no finite layout of these graphs avoids
+// that). The trees below are what that produces, keyed the way bun.lock keys `packages`.
+//
+// bun.lock has to load back into the same tree. That copy's row resolves its dependencies to the
+// wrong versions by path, so the loader has to bind the package from the copy above it instead; the
+// reload half of each test fails if it does not, without --frozen-lockfile noticing.
+
+type Linker = "hoisted" | "isolated";
+
+async function install(cwd: string, ...args: string[]) {
+  await using proc = Bun.spawn({
+    cmd: [bunExe(), "install", ...args],
+    cwd,
+    env: bunEnv,
+    stdout: "pipe",
+    stderr: "pipe",
+  });
+  const [stdout, stderr, exitCode] = await Promise.all([proc.stdout.text(), proc.stderr.text(), proc.exited]);
+  expect({ args, stdout, stderr, exitCode }).toMatchObject({
+    stderr: expect.not.stringContaining("error:"),
+    exitCode: 0,
+  });
+}
+
+async function lockfileTree(dir: string) {
+  const { packages } = Bun.JSONC.parse(await Bun.file(join(dir, "bun.lock")).text()) as {
+    packages: Record<string, [string, ...unknown[]]>;
+  };
+  return Object.fromEntries(Object.entries(packages).map(([path, [resolution]]) => [path, resolution]));
+}
+
+async function installedPackageJsons(dir: string) {
+  const nodeModules = join(dir, "node_modules");
+  const paths = await Array.fromAsync(new Bun.Glob("**/package.json").scan({ cwd: nodeModules, dot: true }));
+  return paths.map(path => path.replaceAll("\\", "/")).sort();
+}
+
+// Installs `files` from scratch, then again in a new directory from the bun.lock that produced,
+// and returns the first install's directory.
+async function installFreshAndFromLockfile(
+  files: Record<string, string>,
+  linker: Linker,
+  expectedTree: Record<string, string>,
+) {
+  const { packageDir } = await registry.createTestDir({ bunfigOpts: { linker }, files });
+  await install(packageDir);
+  const lockfile = await Bun.file(join(packageDir, "bun.lock")).text();
+  expect(await lockfileTree(packageDir)).toEqual(expectedTree);
+
+  const { packageDir: reloadDir } = await registry.createTestDir({
+    bunfigOpts: { linker },
+    files: { ...files, "bun.lock": lockfile },
+  });
+  await install(reloadDir, "--frozen-lockfile");
+  expect(await installedPackageJsons(reloadDir)).toEqual(await installedPackageJsons(packageDir));
+
+  // --lockfile-only always writes, so this is the tree a reload builds, printed back.
+  await install(reloadDir, "--lockfile-only");
+  expect(await Bun.file(join(reloadDir, "bun.lock")).text()).toBe(lockfile);
+
+  return packageDir;
+}
+
+test.each(["hoisted", "isolated"] as const)(
+  "a dependency cycle through two versions of the same packages is installed (%s linker)",
+  async linker => {
+    const packageDir = await installFreshAndFromLockfile(
+      { "package.json": JSON.stringify({ name: "pkg", dependencies: { "hoist-cycle-x": "1.0.0" } }) },
+      linker,
+      {
+        "hoist-cycle-x": "hoist-cycle-x@1.0.0",
+        "hoist-cycle-y": "hoist-cycle-y@1.0.0",
+        "hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@2.0.0",
+        "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@2.0.0",
+        "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@1.0.0",
+        // This y@1.0.0 is below the y@1.0.0 at the root, so it gets no node_modules of its own.
+        "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@1.0.0",
+      },
+    );
+
+    if (linker === "hoisted") {
+      expect(await installedPackageJsons(packageDir)).toEqual([
+        "hoist-cycle-x/package.json",
+        "hoist-cycle-y/node_modules/hoist-cycle-x/node_modules/hoist-cycle-y/node_modules/hoist-cycle-x/node_modules/hoist-cycle-y/package.json",
+        "hoist-cycle-y/node_modules/hoist-cycle-x/node_modules/hoist-cycle-y/node_modules/hoist-cycle-x/package.json",
+        "hoist-cycle-y/node_modules/hoist-cycle-x/node_modules/hoist-cycle-y/package.json",
+        "hoist-cycle-y/node_modules/hoist-cycle-x/package.json",
+        "hoist-cycle-y/package.json",
+      ]);
+    }
+  },
+);
+
+test("a cycle entered at both of its versions, from the root and from a workspace, is installed", async () => {
+  await installFreshAndFromLockfile(
+    {
+      "package.json": JSON.stringify({
+        name: "pkg",
+        workspaces: ["packages/*"],
+        dependencies: { "hoist-cycle-x": "1.0.0" },
+      }),
+      "packages/app/package.json": JSON.stringify({
+        name: "app",
+        version: "1.0.0",
+        dependencies: { "hoist-cycle-x": "2.0.0" },
+      }),
+    },
+    "hoisted",
+    {
+      "app": "app@workspace:packages/app",
+      "hoist-cycle-x": "hoist-cycle-x@1.0.0",
+      "hoist-cycle-y": "hoist-cycle-y@1.0.0",
+      "hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@2.0.0",
+      "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@2.0.0",
+      "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@1.0.0",
+      "hoist-cycle-y/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@1.0.0",
+      // The workspace's branch enters the cycle at x@2.0.0, so it is x@2.0.0's copy that ends it.
+      "app/hoist-cycle-x": "hoist-cycle-x@2.0.0",
+      "app/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@2.0.0",
+      "app/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@1.0.0",
+      "app/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x/hoist-cycle-y": "hoist-cycle-y@1.0.0",
+      "app/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x/hoist-cycle-y/hoist-cycle-x": "hoist-cycle-x@2.0.0",
+    },
+  );
+});
+
+test.each(["hoisted", "isolated"] as const)(
+  "a bundled dependency with a peer on the package bundling it is installed (%s linker)",
+  async linker => {
+    // The plugin's peer is satisfied by the host it is bundled in. The host used to be copied into
+    // its own node_modules instead, and the copy bundled the plugin again below it, and so on.
+    await installFreshAndFromLockfile(
+      { "package.json": JSON.stringify({ name: "pkg", dependencies: { "hoist-bundled-cycle-host": "1.0.0" } }) },
+      linker,
+      {
+        "hoist-bundled-cycle-host": "hoist-bundled-cycle-host@1.0.0",
+        "hoist-bundled-cycle-host/hoist-bundled-cycle-plugin": "hoist-bundled-cycle-plugin@1.0.0",
+      },
+    );
+  },
+);
+
+test("a cycle closed through an optional peer is installed", async () => {
+  await installFreshAndFromLockfile(
+    {
+      "package.json": JSON.stringify({
+        name: "pkg",
+        dependencies: { "hoist-optional-peer-cycle-x": "2.0.0" },
+        devDependencies: { "hoist-optional-peer-cycle-entry": "1.0.0" },
+      }),
+    },
+    "hoisted",
+    {
+      "hoist-optional-peer-cycle-entry": "hoist-optional-peer-cycle-entry@1.0.0",
+      "hoist-optional-peer-cycle-x": "hoist-optional-peer-cycle-x@2.0.0",
+      "hoist-optional-peer-cycle-y": "hoist-optional-peer-cycle-y@2.0.0",
+      "hoist-optional-peer-cycle-z": "hoist-optional-peer-cycle-z@2.0.0",
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x": "hoist-optional-peer-cycle-x@1.0.0",
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y":
+        "hoist-optional-peer-cycle-y@1.0.0",
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-z":
+        "hoist-optional-peer-cycle-z@1.0.0",
+      // y@1.0.0's peer on x@2.0.0, nested because x@1.0.0 is above it.
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-x":
+        "hoist-optional-peer-cycle-x@2.0.0",
+      // z@1.0.0's y@2.0.0, whose optional peer binds to the x@1.0.0 above it here.
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-y":
+        "hoist-optional-peer-cycle-y@2.0.0",
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y":
+        "hoist-optional-peer-cycle-y@2.0.0",
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-z":
+        "hoist-optional-peer-cycle-z@2.0.0",
+      // That y@2.0.0 sits below x@2.0.0, so the bound x@1.0.0 is nested under it; this x@1.0.0 is
+      // below the x@1.0.0 under `entry` and is where the tree ends.
+      "hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-x":
+        "hoist-optional-peer-cycle-x@1.0.0",
+    },
+  );
+});
diff --git a/test/cli/install/registry/packages/create-hoist-cycle-packages.ts b/test/cli/install/registry/packages/create-hoist-cycle-packages.ts
new file mode 100644
index 000000000000..2ab5f295b71c
--- /dev/null
+++ b/test/cli/install/registry/packages/create-hoist-cycle-packages.ts
@@ -0,0 +1,129 @@
+#!/usr/bin/env bun
+/**
+ * Generates the `hoist-*-cycle-*` fixtures used by hoist.test.ts.
+ *
+ * Each shape is a dependency cycle the hoister can only lay out by nesting:
+ * every package in the cycle conflicts with the version of its name one level
+ * up, so without a cutoff the tree builder nests copies forever.
+ *
+ * hoist-cycle (plain dependencies, two versions of each name):
+ *
+ * - hoist-cycle-x@1.0.0 -> hoist-cycle-y@1.0.0
+ * - hoist-cycle-y@1.0.0 -> hoist-cycle-x@2.0.0
+ * - hoist-cycle-x@2.0.0 -> hoist-cycle-y@2.0.0
+ * - hoist-cycle-y@2.0.0 -> hoist-cycle-x@1.0.0
+ *
+ * hoist-bundled-cycle: a package bundling a plugin that has a peer dependency
+ * back on the package bundling it.
+ *
+ * - hoist-bundled-cycle-host@1.0.0    -> plugin@1.0.0 (bundled)
+ * - hoist-bundled-cycle-plugin@1.0.0  peer on host@1.0.0
+ *
+ * hoist-optional-peer-cycle: the cycle is closed through an optional peer.
+ * An optional peer is bound while the tree is built, to whichever version of
+ * its name is closest to the copy being processed, and that one binding is
+ * shared by every copy of the package. With x@2.0.0 at the root and x@1.0.0
+ * nested under `entry`, y@2.0.0 is reached both next to x@1.0.0 (through z,
+ * which binds the peer to it) and below a nested x@2.0.0, where that binding
+ * conflicts and x@1.0.0 is nested again, which starts the cycle over.
+ *
+ * - hoist-optional-peer-cycle-entry@1.0.0 -> x@1.0.0
+ * - hoist-optional-peer-cycle-x@1.0.0     -> y@1.0.0, z@1.0.0
+ * - hoist-optional-peer-cycle-x@2.0.0     -> y@2.0.0, z@2.0.0
+ * - hoist-optional-peer-cycle-y@1.0.0     peer on x@2.0.0
+ * - hoist-optional-peer-cycle-y@2.0.0     optional peer on x@1.0.0
+ * - hoist-optional-peer-cycle-z@1.0.0     -> y@2.0.0
+ * - hoist-optional-peer-cycle-z@2.0.0     no dependencies
+ */
+
+import { mkdir, writeFile } from "fs/promises";
+import { join } from "path";
+
+const packagesDir = import.meta.dir;
+
+type Manifest = {
+  version: string;
+  dependencies?: Record<string, string>;
+  peerDependencies?: Record<string, string>;
+  peerDependenciesMeta?: Record<string, { optional: true }>;
+  bundleDependencies?: string[];
+};
+
+const cycle = "hoist-cycle-";
+const bundled = "hoist-bundled-cycle-";
+const optional = "hoist-optional-peer-cycle-";
+
+const packages: Record<string, Manifest[]> = {
+  [`${cycle}x`]: [
+    { version: "1.0.0", dependencies: { [`${cycle}y`]: "1.0.0" } },
+    { version: "2.0.0", dependencies: { [`${cycle}y`]: "2.0.0" } },
+  ],
+  [`${cycle}y`]: [
+    { version: "1.0.0", dependencies: { [`${cycle}x`]: "2.0.0" } },
+    { version: "2.0.0", dependencies: { [`${cycle}x`]: "1.0.0" } },
+  ],
+
+  [`${bundled}host`]: [
+    {
+      version: "1.0.0",
+      dependencies: { [`${bundled}plugin`]: "1.0.0" },
+      bundleDependencies: [`${bundled}plugin`],
+    },
+  ],
+  [`${bundled}plugin`]: [{ version: "1.0.0", peerDependencies: { [`${bundled}host`]: "1.0.0" } }],
+
+  [`${optional}entry`]: [{ version: "1.0.0", dependencies: { [`${optional}x`]: "1.0.0" } }],
+  [`${optional}x`]: [
+    { version: "1.0.0", dependencies: { [`${optional}y`]: "1.0.0", [`${optional}z`]: "1.0.0" } },
+    { version: "2.0.0", dependencies: { [`${optional}y`]: "2.0.0", [`${optional}z`]: "2.0.0" } },
+  ],
+  [`${optional}y`]: [
+    { version: "1.0.0", peerDependencies: { [`${optional}x`]: "2.0.0" } },
+    {
+      version: "2.0.0",
+      peerDependencies: { [`${optional}x`]: "1.0.0" },
+      peerDependenciesMeta: { [`${optional}x`]: { optional: true } },
+    },
+  ],
+  [`${optional}z`]: [{ version: "1.0.0", dependencies: { [`${optional}y`]: "2.0.0" } }, { version: "2.0.0" }],
+};
+
+for (const [name, manifests] of Object.entries(packages)) {
+  const dir = join(packagesDir, name);
+  await mkdir(dir, { recursive: true });
+
+  const versions: Record<string, object> = {};
+  let latest = "";
+  for (const manifest of manifests) {
+    const pkgJson = { name, ...manifest };
+    const files: Record<string, string> = { "package/package.json": JSON.stringify(pkgJson, null, 2) };
+    for (const dep of manifest.bundleDependencies ?? []) {
+      files[`package/node_modules/${dep}/package.json`] = JSON.stringify(
+        { name: dep, version: manifest.dependencies![dep] },
+        null,
+        2,
+      );
+    }
+    const tarball = join(dir, `${name}-${manifest.version}.tgz`);
+    await Bun.Archive.write(tarball, files, { compress: "gzip" });
+
+    const bytes = await Bun.file(tarball).bytes();
+    versions[manifest.version] = {
+      ...pkgJson,
+      _id: `${name}@${manifest.version}`,
+      dist: {
+        integrity: `sha512-${Buffer.from(new Bun.CryptoHasher("sha512").update(bytes).digest()).toString("base64")}`,
+        shasum: new Bun.CryptoHasher("sha1").update(bytes).digest("hex"),
+        tarball: `http://localhost:4873/${name}/-/${name}-${manifest.version}.tgz`,
+      },
+    };
+    latest = manifest.version;
+  }
+
+  await writeFile(
+    join(dir, "package.json"),
+    JSON.stringify({ _id: name, name, "dist-tags": { latest }, versions }, null, 2),
+  );
+}
+
+console.log("Created hoist cycle test packages");
diff --git a/test/cli/install/registry/packages/hoist-bundled-cycle-host/hoist-bundled-cycle-host-1.0.0.tgz b/test/cli/install/registry/packages/hoist-bundled-cycle-host/hoist-bundled-cycle-host-1.0.0.tgz
new file mode 100644
index 000000000000..37507eb9689e
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-bundled-cycle-host/hoist-bundled-cycle-host-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-bundled-cycle-host/package.json b/test/cli/install/registry/packages/hoist-bundled-cycle-host/package.json
new file mode 100644
index 000000000000..3ab9a86e8308
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-bundled-cycle-host/package.json
@@ -0,0 +1,25 @@
+{
+  "_id": "hoist-bundled-cycle-host",
+  "name": "hoist-bundled-cycle-host",
+  "dist-tags": {
+    "latest": "1.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-bundled-cycle-host",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-bundled-cycle-plugin": "1.0.0"
+      },
+      "bundleDependencies": [
+        "hoist-bundled-cycle-plugin"
+      ],
+      "_id": "hoist-bundled-cycle-host@1.0.0",
+      "dist": {
+        "integrity": "sha512-SFFfaFA5g9jnrCbqHjFhQ2jfd+GFqWQWrwJw3RboD8z/Pn091rfOCiVfyoYwCoByZuCUyCiHojzoXIXYFlSYXA==",
+        "shasum": "51b0aeed7e396f12316b46e763fa6cb1972ecb63",
+        "tarball": "http://localhost:4873/hoist-bundled-cycle-host/-/hoist-bundled-cycle-host-1.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/hoist-bundled-cycle-plugin-1.0.0.tgz b/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/hoist-bundled-cycle-plugin-1.0.0.tgz
new file mode 100644
index 000000000000..722a07a00cc6
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/hoist-bundled-cycle-plugin-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/package.json b/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/package.json
new file mode 100644
index 000000000000..d7ee81ad39b1
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-bundled-cycle-plugin/package.json
@@ -0,0 +1,22 @@
+{
+  "_id": "hoist-bundled-cycle-plugin",
+  "name": "hoist-bundled-cycle-plugin",
+  "dist-tags": {
+    "latest": "1.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-bundled-cycle-plugin",
+      "version": "1.0.0",
+      "peerDependencies": {
+        "hoist-bundled-cycle-host": "1.0.0"
+      },
+      "_id": "hoist-bundled-cycle-plugin@1.0.0",
+      "dist": {
+        "integrity": "sha512-Ln5B/R9XfmUnYRRzx4BXwV8ncQ+xWCWkga1eiuX+HwgYsiCYZlsZfFmz0i+R86eYv/oKuQo5Cy8qxGr1vqp8BQ==",
+        "shasum": "5de566ac4690ed53cf7d3e5a6590c5bef47c6ef0",
+        "tarball": "http://localhost:4873/hoist-bundled-cycle-plugin/-/hoist-bundled-cycle-plugin-1.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-1.0.0.tgz b/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-1.0.0.tgz
new file mode 100644
index 000000000000..4fbb67e76b27
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-2.0.0.tgz b/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-2.0.0.tgz
new file mode 100644
index 000000000000..72032921d3a8
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-cycle-x/hoist-cycle-x-2.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-cycle-x/package.json b/test/cli/install/registry/packages/hoist-cycle-x/package.json
new file mode 100644
index 000000000000..a710c107d8cf
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-cycle-x/package.json
@@ -0,0 +1,35 @@
+{
+  "_id": "hoist-cycle-x",
+  "name": "hoist-cycle-x",
+  "dist-tags": {
+    "latest": "2.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-cycle-x",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-cycle-y": "1.0.0"
+      },
+      "_id": "hoist-cycle-x@1.0.0",
+      "dist": {
+        "integrity": "sha512-XxY8WzFQ5Bl1KRxuXCjsm+fI5ByOVVRT0c3oTzC8OFZ/ya+bXJwAgbx8ZNmLmfMJVZYPdJbKgLmtmQ7YumXOqw==",
+        "shasum": "8c8c12769463f25bb4bbeacd0d257aa78c23e7fd",
+        "tarball": "http://localhost:4873/hoist-cycle-x/-/hoist-cycle-x-1.0.0.tgz"
+      }
+    },
+    "2.0.0": {
+      "name": "hoist-cycle-x",
+      "version": "2.0.0",
+      "dependencies": {
+        "hoist-cycle-y": "2.0.0"
+      },
+      "_id": "hoist-cycle-x@2.0.0",
+      "dist": {
+        "integrity": "sha512-ekGNL6MZSdsQ84pld6v1kcvZNSlR29owcDnPIamnrkuKAIj//DOnvKllLSKpW3ICKtXdvRac65hCt/v7hjQ2Iw==",
+        "shasum": "5fb9f771e881c4f89abc18f0dd75732b44b37380",
+        "tarball": "http://localhost:4873/hoist-cycle-x/-/hoist-cycle-x-2.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-1.0.0.tgz b/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-1.0.0.tgz
new file mode 100644
index 000000000000..0c7b414d7b4e
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-2.0.0.tgz b/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-2.0.0.tgz
new file mode 100644
index 000000000000..752a17fcfc9e
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-cycle-y/hoist-cycle-y-2.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-cycle-y/package.json b/test/cli/install/registry/packages/hoist-cycle-y/package.json
new file mode 100644
index 000000000000..108a59aaffc5
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-cycle-y/package.json
@@ -0,0 +1,35 @@
+{
+  "_id": "hoist-cycle-y",
+  "name": "hoist-cycle-y",
+  "dist-tags": {
+    "latest": "2.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-cycle-y",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-cycle-x": "2.0.0"
+      },
+      "_id": "hoist-cycle-y@1.0.0",
+      "dist": {
+        "integrity": "sha512-6wncHD+Md00Ib56bEGFfUOu92s/KY8359DUdCF+P2c3QJvmQ1tKf8P/vR+SRvM0Vk759pKe2EHlhUOgWPOFVWg==",
+        "shasum": "08a70c02642754a082346211eca18ed5b1041729",
+        "tarball": "http://localhost:4873/hoist-cycle-y/-/hoist-cycle-y-1.0.0.tgz"
+      }
+    },
+    "2.0.0": {
+      "name": "hoist-cycle-y",
+      "version": "2.0.0",
+      "dependencies": {
+        "hoist-cycle-x": "1.0.0"
+      },
+      "_id": "hoist-cycle-y@2.0.0",
+      "dist": {
+        "integrity": "sha512-Q8oaz58QXz8CB6hh0kGLkTBsNvkooYaZN4cTVSweoefw1VcymRVMBoDmi/ku+4BZDYDKI5idwdQ6+oDqK09Wjw==",
+        "shasum": "8b01a417c5f2156e68fa9342966bcd50ee319b91",
+        "tarball": "http://localhost:4873/hoist-cycle-y/-/hoist-cycle-y-2.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-entry-1.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-entry-1.0.0.tgz
new file mode 100644
index 000000000000..d9593a54544c
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/hoist-optional-peer-cycle-entry-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/package.json b/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/package.json
new file mode 100644
index 000000000000..604e9a659ecc
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-optional-peer-cycle-entry/package.json
@@ -0,0 +1,22 @@
+{
+  "_id": "hoist-optional-peer-cycle-entry",
+  "name": "hoist-optional-peer-cycle-entry",
+  "dist-tags": {
+    "latest": "1.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-optional-peer-cycle-entry",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-optional-peer-cycle-x": "1.0.0"
+      },
+      "_id": "hoist-optional-peer-cycle-entry@1.0.0",
+      "dist": {
+        "integrity": "sha512-FDfiSd8eCpyJ3n324Hk8KdEoNLkB/go8tQvT9txL1qt/ULRhuzYfCjT0StP5a3pYykhvjQFYA17VzF1ZMPsEqw==",
+        "shasum": "be52741a45e564b667febacfdcfcd2433ba474ef",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-entry/-/hoist-optional-peer-cycle-entry-1.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-1.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-1.0.0.tgz
new file mode 100644
index 000000000000..9c948777879f
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-2.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-2.0.0.tgz
new file mode 100644
index 000000000000..e194805325bc
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/hoist-optional-peer-cycle-x-2.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/package.json b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/package.json
new file mode 100644
index 000000000000..d0860938ccb0
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-optional-peer-cycle-x/package.json
@@ -0,0 +1,37 @@
+{
+  "_id": "hoist-optional-peer-cycle-x",
+  "name": "hoist-optional-peer-cycle-x",
+  "dist-tags": {
+    "latest": "2.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-optional-peer-cycle-x",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-optional-peer-cycle-y": "1.0.0",
+        "hoist-optional-peer-cycle-z": "1.0.0"
+      },
+      "_id": "hoist-optional-peer-cycle-x@1.0.0",
+      "dist": {
+        "integrity": "sha512-KlprcCPzErpXf5tACt0XAxTEYf7fk+72MSCcBs7j6xnIKikqIK1h3LxEHkcNqT4dB4fAIhsfJK88T9OWhvCgPA==",
+        "shasum": "3f31db5e7f100aa1061349e8e4926067cb71b54f",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-x/-/hoist-optional-peer-cycle-x-1.0.0.tgz"
+      }
+    },
+    "2.0.0": {
+      "name": "hoist-optional-peer-cycle-x",
+      "version": "2.0.0",
+      "dependencies": {
+        "hoist-optional-peer-cycle-y": "2.0.0",
+        "hoist-optional-peer-cycle-z": "2.0.0"
+      },
+      "_id": "hoist-optional-peer-cycle-x@2.0.0",
+      "dist": {
+        "integrity": "sha512-inK8dVXwSw1OCxE7iULIpMNMnpPYt3duWJtY2TnizQ1nBopIeDbYOESvN7iWZ63qzH3x8xkpBz7Aw0Lnyerqag==",
+        "shasum": "174af505b598ac64b79d11045e01ba1bf8ef5dd8",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-x/-/hoist-optional-peer-cycle-x-2.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-1.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-1.0.0.tgz
new file mode 100644
index 000000000000..7f46eef56823
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-2.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-2.0.0.tgz
new file mode 100644
index 000000000000..d489f89c7b6e
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/hoist-optional-peer-cycle-y-2.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/package.json b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/package.json
new file mode 100644
index 000000000000..86abf8665e9c
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-optional-peer-cycle-y/package.json
@@ -0,0 +1,40 @@
+{
+  "_id": "hoist-optional-peer-cycle-y",
+  "name": "hoist-optional-peer-cycle-y",
+  "dist-tags": {
+    "latest": "2.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-optional-peer-cycle-y",
+      "version": "1.0.0",
+      "peerDependencies": {
+        "hoist-optional-peer-cycle-x": "2.0.0"
+      },
+      "_id": "hoist-optional-peer-cycle-y@1.0.0",
+      "dist": {
+        "integrity": "sha512-K6r6RYiWvhsjN0UMpVoBXWRvE7tUUXGIiS1ZxMf+HW4dsgMNXB+hfWMoQ8DlwNHZuM1kTdSIkc5u4rDIrf1x0A==",
+        "shasum": "c450c4030181e5c778268eab31bffa98d595cfbf",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-y/-/hoist-optional-peer-cycle-y-1.0.0.tgz"
+      }
+    },
+    "2.0.0": {
+      "name": "hoist-optional-peer-cycle-y",
+      "version": "2.0.0",
+      "peerDependencies": {
+        "hoist-optional-peer-cycle-x": "1.0.0"
+      },
+      "peerDependenciesMeta": {
+        "hoist-optional-peer-cycle-x": {
+          "optional": true
+        }
+      },
+      "_id": "hoist-optional-peer-cycle-y@2.0.0",
+      "dist": {
+        "integrity": "sha512-ycp0N508WdyGz/ECodwmYUWevdQrSeCSKvjjUFL+oEkJyz0l8lKn7cHcD7Png+oQ5heJbJUkje91bIZKhyeLaA==",
+        "shasum": "d2befacfc7eb260db2369e59d2d3ce0755af5d23",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-y/-/hoist-optional-peer-cycle-y-2.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-1.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-1.0.0.tgz
new file mode 100644
index 000000000000..292f583dca19
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-1.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-2.0.0.tgz b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-2.0.0.tgz
new file mode 100644
index 000000000000..147d280f1957
Binary files /dev/null and b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/hoist-optional-peer-cycle-z-2.0.0.tgz differ
diff --git a/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/package.json b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/package.json
new file mode 100644
index 000000000000..afec4abf2a8a
--- /dev/null
+++ b/test/cli/install/registry/packages/hoist-optional-peer-cycle-z/package.json
@@ -0,0 +1,32 @@
+{
+  "_id": "hoist-optional-peer-cycle-z",
+  "name": "hoist-optional-peer-cycle-z",
+  "dist-tags": {
+    "latest": "2.0.0"
+  },
+  "versions": {
+    "1.0.0": {
+      "name": "hoist-optional-peer-cycle-z",
+      "version": "1.0.0",
+      "dependencies": {
+        "hoist-optional-peer-cycle-y": "2.0.0"
+      },
+      "_id": "hoist-optional-peer-cycle-z@1.0.0",
+      "dist": {
+        "integrity": "sha512-CVxdzowZDlVIXkbYwdTBboHzoZj37q6BMsbliVhhb1jUc9oD5ekzEW/X7x697DVKQbVGekQ5Sbq005ATD1kcRQ==",
+        "shasum": "cf47fc0ae10f5d732cc60124a6475e92c65eba35",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-z/-/hoist-optional-peer-cycle-z-1.0.0.tgz"
+      }
+    },
+    "2.0.0": {
+      "name": "hoist-optional-peer-cycle-z",
+      "version": "2.0.0",
+      "_id": "hoist-optional-peer-cycle-z@2.0.0",
+      "dist": {
+        "integrity": "sha512-uHhXNwS4Q2LxIJp2KcJ1LLs/5QOyggw6QQvoXqp5GM6JS1yO1tG4d7n+t4gZM+GyQT6mtP8Vtz0YZe9aaEwZHw==",
+        "shasum": "a875d069566a9b97a2cffa171dba2826934bfb2c",
+        "tarball": "http://localhost:4873/hoist-optional-peer-cycle-z/-/hoist-optional-peer-cycle-z-2.0.0.tgz"
+      }
+    }
+  }
+}
\ No newline at end of file