diff --git a/HSCParser.hs b/HSCParser.hs
index 478faf0679665dde5c2bfac1618a2e169b185181..dc6ab261e443003588c9729c014cd0f2f1ce3878 100644
--- a/HSCParser.hs
+++ b/HSCParser.hs
@@ -166,7 +166,7 @@ text = do
                     text
         '\"':_        -> do anyChar_; hsString '\"'; text
         -- See Note [Single Quotes]
-        '\'':'\\':_ -> do any2Chars_; hsString '\''; text -- Case 1
+        '\'':'\\':_ -> do anyChar_; hsString '\''; text -- Case 1
         '\'':d:'\'':_ -> do any3Chars_; text -- Case 2
         '\'':d:_ | isSpace d -> do -- Case 3
           any2Chars_
@@ -183,38 +183,40 @@ text = do
           text
         _:_           -> do anyChar_; text
 
--- Note [Single Quotes]
---
--- hsc2hs performs some tricks to figure out if we are looking at character
--- literal or a promoted data constructor. In order, the cases considered are:
---
--- 1. quote-backslash: An escape sequence character literal. Since these
---    escape sequences have several different possible lengths, hsc2hs will
---    consume everything after this until another single quote is encountered.
--- 2. quote-any-quote: A character literal. Consumes the triplet.
--- 3. quote-space: Here, the order of the patterns becomes important. This
---    case and the case below handle promoted data constructors. This one
---    is to handle data constructor that end in a quote. They have special
---    syntax for promotion that requires adding a leading space. After an
---    arbitrary number of initial space characters, consume
---    all alphanumeric characters and quotes, considering them part of the
---    identifier.
--- 4. quote: If nothing else matched, we assume we are dealing with a normal
---    promoted data constructor. Consume all alphanumeric characters and
---    quotes, considering them part of the identifier.
---
--- Here are some lines of code for which at one of the described cases
--- would be matched at some point:
---
---     data Foo = Foo' | Bar
---
---     main :: IO ()
---     main = do
--- 1>    putChar 'x'
--- 2>    putChar '\NUL'
--- 3>    let y = Proxy :: Proxy ' Foo'
--- 4>    let x = Proxy :: Proxy 'Bar
---       pure ()
+{- Note [Single Quotes]
+~~~~~~~~~~~~~~~~~~~~~~~
+hsc2hs performs some tricks to figure out if we are looking at character
+literal or a promoted data constructor. In order, the cases considered are:
+
+1. quote-backslash: An escape sequence character literal. Since these
+   escape sequences have several different possible lengths, hsc2hs relies
+   on hsString to consume everything after this until another single quote
+   is encountered. See Note [Handling escaped characters].
+2. quote-any-quote: A character literal. Consumes the triplet.
+3. quote-space: Here, the order of the patterns becomes important. This
+   case and the case below handle promoted data constructors. This one
+   is to handle data constructor that end in a quote. They have special
+   syntax for promotion that requires adding a leading space. After an
+   arbitrary number of initial space characters, consume
+   all alphanumeric characters and quotes, considering them part of the
+   identifier.
+4. quote: If nothing else matched, we assume we are dealing with a normal
+   promoted data constructor. Consume all alphanumeric characters and
+   quotes, considering them part of the identifier.
+
+Here are some lines of code for which at one of the described cases
+would be matched at some point:
+
+    data Foo = Foo' | Bar
+
+    main :: IO ()
+    main = do
+1>    putChar '\NUL'
+2>    putChar 'x'
+3>    let y = Proxy :: Proxy ' Foo'
+4>    let x = Proxy :: Proxy 'Bar
+      pure ()
+-}
 
 hsString :: Char -> Parser ()
 hsString quote = do
@@ -222,6 +224,7 @@ hsString quote = do
     case s of
         []               -> return ()
         c:_ | c == quote -> anyChar_
+        -- See Note [Handling escaped characters]
         '\\':c:_
             | isSpace c  -> do
                 anyChar_
@@ -231,6 +234,27 @@ hsString quote = do
             | otherwise  -> do any2Chars_; hsString quote
         _:_              -> do anyChar_; hsString quote
 
+{- Note [Handling escaped characters]
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+There are several accepted escape codes for string and character literals.
+The function hsString handles all escape sequences that start with space
+in its first guard and all others in the otherwise guard. It only needs
+to consume two characters to handle these non-space-prefixed escape
+sequences correctly. Consider these examples:
+
+* Single Character: \t ->
+* Multiple Characters: \DEL -> EL
+* Decimal: \1789 -> 789
+* Hexadecimal: \xbeef -> beef
+* Octal: \o3576 -> 3576
+
+Crucially, none of these suffixes left after dropping the leading two
+characters ever contain single quote, double quote, or backslash.
+Consequently, these leftover characters will be matched by the
+final pattern match (_:_) in hsString since the call to any2Chars_
+is followed by recursing.
+-}
+
 hsComment :: Parser ()
 hsComment = do
     s <- lookAhead