diff --git a/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/RedundantBraces.scala b/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/RedundantBraces.scala
index e426c33f76..959c32870c 100644
--- a/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/RedundantBraces.scala
+++ b/scalafmt-core/shared/src/main/scala/org/scalafmt/rewrite/RedundantBraces.scala
@@ -114,7 +114,8 @@ class RedundantBraces(ftoks: FormatTokens) extends FormatTokensRewrite.Rule {
     // single-arg apply of a partial function
     // a({ case b => c; d }) change to a { case b => c; d }
     def lpPartialFunction = rtOwner match {
-      case ta @ Term.ArgClause(arg :: Nil, _) =>
+      case ta @ Term.ArgClause(arg :: Nil, _)
+          if !ta.parent.exists(_.is[Init]) =>
         getOpeningParen(ta).map { lp =>
           val ko = lp.ne(rt) || getBlockNestedPartialFunction(arg).isEmpty
           if (ko) null else removeToken
diff --git a/scalafmt-tests/src/test/resources/rewrite/RedundantBraces.stat b/scalafmt-tests/src/test/resources/rewrite/RedundantBraces.stat
index 5d7f7e521d..ef43893387 100644
--- a/scalafmt-tests/src/test/resources/rewrite/RedundantBraces.stat
+++ b/scalafmt-tests/src/test/resources/rewrite/RedundantBraces.stat
@@ -1386,3 +1386,7 @@ object A:
         case s: String => s
         case _         => ae.toString
     }.toList
+<<< #3540
+object Bar extends Foo[(Int, String)]({ case (i, s) => () })
+>>>
+object Bar extends Foo[(Int, String)]({ case (i, s) => () })