diff --git a/Distribution/Client/Install.hs b/Distribution/Client/Install.hs
--- a/Distribution/Client/Install.hs
+++ b/Distribution/Client/Install.hs
@@ -1266,8 +1266,8 @@
   tmp <- getTemporaryDirectory
   withTempDirectory verbosity tmp (display pkgid) $ \tmpDirPath ->
     onFailure UnpackFailed $ do
-      let relUnpackedPath = display pkgid
-          absUnpackedPath = tmpDirPath </> relUnpackedPath
+      let relUnpackedPath = "."
+          absUnpackedPath = tmpDirPath
           descFilePath = absUnpackedPath
                      </> display (packageName pkgid) <.> "cabal"
       withJobLimit jobLimit $ do
diff --git a/bootstrap.sh b/bootstrap.sh
--- a/bootstrap.sh
+++ b/bootstrap.sh
@@ -190,7 +190,7 @@
                        # >= 2.0 && < 2.7
 NETWORK_URI_VER="2.6.0.1"; NETWORK_URI_VER_REGEXP="2\.6\."
                        # >= 2.6 && < 2.7
-CABAL_VER="1.22.3.0";  CABAL_VER_REGEXP="1\.22"
+CABAL_VER="1.22.4.0";  CABAL_VER_REGEXP="1\.22"
                        # >= 1.22 && < 1.23
 TRANS_VER="0.4.2.0";   TRANS_VER_REGEXP="0\.[4]\."
                        # >= 0.2.* && < 0.5
diff --git a/cabal-install.cabal b/cabal-install.cabal
--- a/cabal-install.cabal
+++ b/cabal-install.cabal
@@ -1,5 +1,5 @@
 Name:               cabal-install
-Version:            1.22.4.0
+Version:            1.22.5.0
 Synopsis:           The command-line interface for Cabal and Hackage.
 Description:
     The \'cabal\' command-line program simplifies the process of managing
diff --git a/changelog b/changelog
--- a/changelog
+++ b/changelog
@@ -1,4 +1,7 @@
 -*-change-log-*-
+1.22.5.0 Ryan Thomas <ryan@ryant.org> June 2015
+	* Reduce temporary directory name length, fixes #2502. (Edward Z. Yang)
+
 1.22.4.0 Ryan Thomas <ryan@ryant.org> May 2015
 	* Force cabal upload to always use digest auth and never basic auth.
 	* Add dependency-graph information to `printPlan` output