Constraint doesn't reduce in the presence of quantified type variables

{-# OPTIONS -fglasgow-exts #-}
{-# OPTIONS -fallow-undecidable-instances #-}

module Problem where

data Z
data S a

class HPrefix l
instance (NSub (S Z) ndiff, HDrop ndiff l l) => HPrefix l

class NSub n1 n3 | n1 -> n3
instance NSub Z Z
instance NSub n1 n3 => NSub (S n1) n3

class HDrop n l1 l2 | n l1 -> l2
instance HDrop Z l l

t_hPrefix :: HPrefix l => l -> ()
t_hPrefix = undefined

-- This works...
thr' :: (forall r. l -> a) -> a
thr' f = f undefined
thP4' = thr' t_hPrefix

-- ... but this doesn't work...?
thr :: (forall r. r -> a) -> a
thr f = f undefined
thP4 = thr t_hPrefix

$ ghci GHCProblem.hs 
   ___         ___ _
  / _ \ /\  /\/ __(_)
 / /_\// /_/ / /  | |      GHC Interactive, version 6.6.1, for Haskell 98.
/ /_\\/ __  / /___| |      http://www.haskell.org/ghc/
\____/\/ /_/\____/|_|      Type :? for help.

Loading package base ... linking ... done.
[1 of 1] Compiling Problem          ( GHCProblem.hs, interpreted )

GHCProblem.hs:30:11:
    No instance for (HDrop ndiff r r)
      arising from use of `t_hPrefix' at GHCProblem.hs:30:11-19
    Possible fix:
      add (HDrop ndiff r r) to the expected type of an expression
    In the first argument of `thr', namely `t_hPrefix'
    In the expression: thr t_hPrefix
    In the definition of `thP4': thP4 = thr t_hPrefix
Failed, modules loaded: none.

Trac metadata

Trac field	Value
Version	6.6.1
Type	Bug
TypeOfFailure	OtherFailure
Priority	normal
Resolution	Unresolved
Component	Compiler (Type checker)
Test case
Differential revisions
BlockedBy
Related
Blocking
CC
Operating system	Unknown
Architecture