diff --git a/sc2/src/uqm/comm.c b/sc2/src/uqm/comm.c
index e82c8700b..13febe38a 100644
--- a/sc2/src/uqm/comm.c
+++ b/sc2/src/uqm/comm.c
@@ -1575,14 +1575,14 @@ RaceCommunication (void)
 			COUNT NumShips;
 			ENCOUNTER *EncounterPtr;
 
+			// The encounter globe that the flagship collided with is moved
+			// to the head of the queue in hyper.c:cleanup_hyperspace()
 			hEncounter = GetHeadEncounter ();
 			LockEncounter (hEncounter, &EncounterPtr);
 
 			NumShips = LONIBBLE (EncounterPtr->SD.Index);
 			for (i = 0; i < NumShips; ++i)
 			{
-				// XXX: Bug 996 lives here: crew is set to default (0)
-				//   None of ship info is actually used!
 				CloneShipFragment (EncounterPtr->SD.Type,
 						&GLOBAL (npc_built_ship_q),
 						EncounterPtr->ShipList[i].crew_level);
diff --git a/sc2/src/uqm/hyper.c b/sc2/src/uqm/hyper.c
index 73c906742..d699a498b 100644
--- a/sc2/src/uqm/hyper.c
+++ b/sc2/src/uqm/hyper.c
@@ -404,8 +404,10 @@ cleanup_hyperspace (void)
 
 			LockElement (EncounterPtr->hElement, &ElementPtr);
 
-			if (ElementPtr->state_flags & BAD_GUY)
-			{
+			if (ElementPtr->hTarget)
+			{	// This is the encounter that collided with flagship
+				// Move the encounter to the head of the queue so that
+				// comm.c:RaceCommunication() gets the right one.
 				RemoveEncounter (hEncounter);
 				InsertEncounter (hEncounter, GetHeadEncounter ());
 			}
@@ -861,6 +863,24 @@ encounter_transition (ELEMENT *ElementPtr)
 	}
 }
 
+static HELEMENT
+getSisElement (void)
+{
+	HSTARSHIP hSis;
+	HELEMENT hShip;
+	STARSHIP *StarShipPtr;
+
+	hSis = GetHeadLink (&race_q[RPG_PLAYER_NUM]);
+	if (!hSis)
+		return NULL;
+
+	StarShipPtr = LockStarShip (&race_q[RPG_PLAYER_NUM], hSis);
+	hShip = StarShipPtr->hShip;
+	UnlockStarShip (&race_q[RPG_PLAYER_NUM], hSis);
+
+	return hShip;
+}
+
 static void
 encounter_collision (ELEMENT *ElementPtr0, POINT *pPt0,
 		ELEMENT *ElementPtr1, POINT *pPt1)
@@ -893,7 +913,10 @@ encounter_collision (ELEMENT *ElementPtr0, POINT *pPt0,
 			UnlockEncounter (hEncounter);
 		}
 
-		ElementPtr0->state_flags |= BAD_GUY;
+		// Mark this element as collided with flagship
+		// XXX: We could simply set hTarget to 1 or to ElementPtr1,
+		//   but that would be too hacky ;)
+		ElementPtr0->hTarget = getSisElement ();
 		ZeroVelocityComponents (&ElementPtr0->velocity);
 	}
 	(void) pPt0;  /* Satisfying compiler (unused parameter) */
@@ -1162,8 +1185,9 @@ DeleteEncounter:
 						&delta_x, &delta_y, 1);
 				if (ElementPtr->thrust_wait)
 					--ElementPtr->thrust_wait;
-				else if (!(ElementPtr->state_flags & BAD_GUY))
-				{
+				else if (!ElementPtr->hTarget)
+				{	// This is an encounter that did not collide with flagship
+					// The colliding encounter does not move
 					COUNT cur_facing, delta_facing;
 
 					cur_facing = ANGLE_TO_FACING (