diff --git a/bin/webpack.js b/bin/webpack.js
index e9507b49f..e8e487342 100644
--- a/bin/webpack.js
+++ b/bin/webpack.js
@@ -211,6 +211,9 @@ if(!output) {
 			cwdParent = new RegExp("^" + cwdParent + "|(!)" + cwdParent, "g");
 			buildins = buildins.replace(/[-[\]{}()*+?.,\\^$|#\s]/g, "\\$&");
 			buildins = new RegExp("^" + buildins + "|(!)" + buildins, "g");
+			var node_modulesRegExpA = /\/node_modules\//g;
+			var node_modulesRegExpB = /\\node_modules\\/g;
+			var index_jsRegExp = /[\\\/]index.js!/g;
 			function compressFilename(filename) {
 				if(!filename)
 					return filename;
@@ -219,8 +222,10 @@ if(!output) {
 				filename = filename.replace(cwd, "!.");
 				if(!buildinsAsModule)
 					filename = filename.replace(buildins, "!(webpack)");
-				filename = filename.replace(cwdParent, "!..");
-				return filename.replace(/^!/, "");
+				filename = filename.replace(node_modulesRegExpA, "/~/");
+				filename = filename.replace(node_modulesRegExpB, "\\~\\");
+				filename = filename.replace(index_jsRegExp, "!");
+				return filename.replace(/^!|!$/, "");
 			}
 			if(stats.fileModules) {
 				console.log();
diff --git a/package.json b/package.json
index 5b97127d1..954ec1bef 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
 	"name": "webpack",
-	"version": "0.3.11",
+	"version": "0.3.12",
 	"author": "Tobias Koppers @sokra",
 	"description": "Packs CommonJs Modules for the browser. Allows to split your codebase into multiple bundles, which can be loaded on demand. Support loading of js, json, jade, coffee, css, ... out of the box and more with custom loaders.",
 	"dependencies": {