diff --git a/compdata.cabal b/compdata.cabal
--- a/compdata.cabal
+++ b/compdata.cabal
@@ -1,5 +1,5 @@
 Name:			compdata
-Version:		0.6.1.1
+Version:		0.6.1.2
 Synopsis:            	Compositional Data Types
 Description:
 
diff --git a/src/Data/Comp/Multi/Variables.hs b/src/Data/Comp/Multi/Variables.hs
--- a/src/Data/Comp/Multi/Variables.hs
+++ b/src/Data/Comp/Multi/Variables.hs
@@ -142,7 +142,7 @@
 varsToHoles t = unC (cata alg t) Set.empty
     where alg :: (HTraversable f, HasVars f v, Ord v) => Alg f (C (Set v) (Context f (K v)))
           alg t = C $ \vars -> case isVar t of
-            Just v | v `Set.member` vars -> Hole $ K v
+            Just v | not (v `Set.member` vars) -> Hole $ K v
             _  -> Term $ hfmapBoundVars run t
               where 
                 run :: Set v -> C (Set v) (Context f (K v))  :-> Context f (K v)
diff --git a/src/Data/Comp/Variables.hs b/src/Data/Comp/Variables.hs
--- a/src/Data/Comp/Variables.hs
+++ b/src/Data/Comp/Variables.hs
@@ -121,7 +121,7 @@
 varsToHoles t = cata alg t Set.empty
     where alg :: (Traversable f, HasVars f v, Ord v) => Alg f (Set v -> Context f v)
           alg t vars = case isVar t of
-            Just v | v `Set.member` vars -> Hole v
+            Just v | not (v `Set.member` vars) -> Hole v
             _  -> Term $ fmapBoundVars run t
               where 
                 run newVars f = f $ newVars `Set.union` vars