diff --git a/src/parser_json.c b/src/parser_json.c
index 095705b..e2ed9ae 100644
--- a/src/parser_json.c
+++ b/src/parser_json.c
@@ -287,12 +287,23 @@
 
     /* skip after the content */
     do {
+        uint32_t prev_depth = jsonctx->depth;
+
         LY_CHECK_RET(lyjson_ctx_next(jsonctx, &current));
+
         if (current == status) {
+            /* lyjson_ctx_next() can return LYSJON_OBJECT in two cases, either when
+             * a new object is encountered, or when it finishes parsing a value from a
+             * previous key-value pair. In the latter case the sublevel shouldn't increase.
+            */
+            if ((status == LYJSON_OBJECT) && (prev_depth == jsonctx->depth)) {
+                continue;
+            }
+
             sublevels++;
-        } else if ((status == LYJSON_OBJECT) && ((current == LYJSON_OBJECT_CLOSED) || (current == LYJSON_OBJECT_EMPTY))) {
+        } else if ((status == LYJSON_OBJECT) && (current == LYJSON_OBJECT_CLOSED)) {
             sublevels--;
-        } else if ((status == LYJSON_ARRAY) && ((current == LYJSON_ARRAY_CLOSED) || (current == LYJSON_ARRAY_EMPTY))) {
+        } else if ((status == LYJSON_ARRAY) && (current == LYJSON_ARRAY_CLOSED)) {
             sublevels--;
         }
     } while (current != status + 1 || sublevels);
diff --git a/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_1 b/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_1
new file mode 100644
index 0000000..e411daa
--- /dev/null
+++ b/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_1
@@ -0,0 +1 @@
+{"types:cont":{"leaflt30,1,10,2]xxnt32":1,"types:uint":1,"types:uinis2":922337203685477}}
\ No newline at end of file
diff --git a/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_2 b/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_2
new file mode 100644
index 0000000..623be41
--- /dev/null
+++ b/tests/fuzz/corpus/lyd_parse_mem_json/pull1696_2
@@ -0,0 +1 @@
+{"types:cont":{"leaflt30,1,GGGGGGGGGGGGGGGGGGGGGGGGGGGGG10,2]xxnt32":1,"types:ui~t":1,"types:uinis2":922337203685477}}
\ No newline at end of file