diff --git a/packages/element/src/binding.ts b/packages/element/src/binding.ts
index 927f55ae08..8420b5df5a 100644
--- a/packages/element/src/binding.ts
+++ b/packages/element/src/binding.ts
@@ -27,7 +27,7 @@ import {
   PRECISION,
 } from "@excalidraw/math";
 
-import { isPointInShape, isPointOnShape } from "@excalidraw/utils/collision";
+import { isPointInShape } from "@excalidraw/utils/collision";
 
 import { getEllipseShape, getPolygonShape } from "@excalidraw/utils/shape";
 
@@ -64,7 +64,7 @@ import {
   isTextElement,
 } from "./typeChecks";
 
-import { aabbForElement, getElementShape, pointInsideBounds } from "./shapes";
+import { aabbForElement } from "./shapes";
 import { updateElbowArrowPoints } from "./elbowArrow";
 
 import type Scene from "./Scene";
@@ -108,7 +108,7 @@ export const isBindingEnabled = (appState: AppState): boolean => {
 };
 
 export const FIXED_BINDING_DISTANCE = 5;
-export const BINDING_HIGHLIGHT_THICKNESS = 10;
+const BINDING_HIGHLIGHT_THICKNESS = 10;
 export const BINDING_HIGHLIGHT_OFFSET = 4;
 
 const getNonDeletedElements = (
@@ -442,19 +442,15 @@ const normalizePointBinding = (
   binding: { focus: number; gap: number },
   hoveredElement: ExcalidrawBindableElement,
 ) => {
-  let gap = binding.gap;
   const maxGap = maxBindingGap(
     hoveredElement,
     hoveredElement.width,
     hoveredElement.height,
   );
 
-  if (gap > maxGap) {
-    gap = BINDING_HIGHLIGHT_THICKNESS + BINDING_HIGHLIGHT_OFFSET;
-  }
   return {
     ...binding,
-    gap,
+    gap: Math.min(binding.gap, maxGap),
   };
 };
 
@@ -566,21 +562,25 @@ export const getHoveredElementForBinding = (
     let cullRest = false;
     const candidateElements = getAllElementsAtPositionForBinding(
       elements,
-      (element) =>
-        isBindableElement(element, false) &&
-        bindingBorderTest(
-          element,
-          pointerCoords,
-          elementsMap,
-          zoom,
-          (fullShape ||
-            !isBindingFallthroughEnabled(
-              element as ExcalidrawBindableElement,
-            )) &&
-            // disable fullshape snapping for frame elements so we
-            // can bind to frame children
-            !isFrameLikeElement(element),
-        ),
+      (element) => {
+        const result =
+          isBindableElement(element, false) &&
+          bindingBorderTest(
+            element,
+            pointerCoords,
+            elementsMap,
+            zoom,
+            (fullShape ||
+              !isBindingFallthroughEnabled(
+                element as ExcalidrawBindableElement,
+              )) &&
+              // disable fullshape snapping for frame elements so we
+              // can bind to frame children
+              !isFrameLikeElement(element),
+          );
+
+        return result;
+      },
     ).filter((element) => {
       if (cullRest) {
         return false;
@@ -888,7 +888,12 @@ export const getHeadingForElbowArrowSnap = (
     return otherPointHeading;
   }
 
-  const distance = getDistanceForBinding(origPoint, bindableElement, zoom);
+  const distance = getDistanceForBinding(
+    origPoint,
+    bindableElement,
+    true,
+    zoom,
+  );
 
   if (!distance) {
     return vectorToHeading(
@@ -899,9 +904,10 @@ export const getHeadingForElbowArrowSnap = (
   return headingForPointFromElement(bindableElement, aabb, p);
 };
 
-const getDistanceForBinding = (
+export const getDistanceForBinding = (
   point: Readonly<GlobalPoint>,
   bindableElement: ExcalidrawBindableElement,
+  fullShape: boolean,
   zoom?: AppState["zoom"],
 ) => {
   const distance = distanceToBindableElement(bindableElement, point);
@@ -911,12 +917,14 @@ const getDistanceForBinding = (
     bindableElement.height,
     zoom,
   );
-  const isInside = isPointInShape(
-    point,
-    bindableElement.type === "ellipse"
-      ? getEllipseShape(bindableElement)
-      : getPolygonShape(bindableElement),
-  );
+  const isInside = fullShape
+    ? isPointInShape(
+        point,
+        bindableElement.type === "ellipse"
+          ? getEllipseShape(bindableElement)
+          : getPolygonShape(bindableElement),
+      )
+    : false;
 
   return distance > bindDistance && !isInside ? null : distance;
 };
@@ -1172,22 +1180,22 @@ export const snapToMid = (
       angle,
     );
   } else if (element.type === "diamond") {
-    const sqrtFixedDistance = Math.sqrt(FIXED_BINDING_DISTANCE);
+    const distance = FIXED_BINDING_DISTANCE - 1;
     const topLeft = pointFrom<GlobalPoint>(
-      x + width / 4 - sqrtFixedDistance,
-      y + height / 4 - sqrtFixedDistance,
+      x + width / 4 - distance,
+      y + height / 4 - distance,
     );
     const topRight = pointFrom<GlobalPoint>(
-      x + (3 * width) / 4 + sqrtFixedDistance,
-      y + height / 4 - sqrtFixedDistance,
+      x + (3 * width) / 4 + distance,
+      y + height / 4 - distance,
     );
     const bottomLeft = pointFrom<GlobalPoint>(
-      x + width / 4 - sqrtFixedDistance,
-      y + (3 * height) / 4 + sqrtFixedDistance,
+      x + width / 4 - distance,
+      y + (3 * height) / 4 + distance,
     );
     const bottomRight = pointFrom<GlobalPoint>(
-      x + (3 * width) / 4 + sqrtFixedDistance,
-      y + (3 * height) / 4 + sqrtFixedDistance,
+      x + (3 * width) / 4 + distance,
+      y + (3 * height) / 4 + distance,
     );
     if (
       pointDistance(topLeft, nonRotated) <
@@ -1553,14 +1561,14 @@ export const bindingBorderTest = (
   zoom?: AppState["zoom"],
   fullShape?: boolean,
 ): boolean => {
-  const threshold = maxBindingGap(element, element.width, element.height, zoom);
-
-  const shape = getElementShape(element, elementsMap);
-  return (
-    isPointOnShape(pointFrom(x, y), shape, threshold) ||
-    (fullShape === true &&
-      pointInsideBounds(pointFrom(x, y), aabbForElement(element)))
+  const distance = getDistanceForBinding(
+    pointFrom(x, y),
+    element,
+    !!fullShape,
+    zoom,
   );
+
+  return !!distance;
 };
 
 export const maxBindingGap = (
diff --git a/packages/element/src/elbowArrow.ts b/packages/element/src/elbowArrow.ts
index 95a2aa8ef5..22ae427136 100644
--- a/packages/element/src/elbowArrow.ts
+++ b/packages/element/src/elbowArrow.ts
@@ -31,6 +31,7 @@ import {
   getGlobalFixedPointForBindableElement,
   snapToMid,
   getHoveredElementForBinding,
+  getDistanceForBinding,
 } from "./binding";
 import { distanceToBindableElement } from "./distance";
 import {
@@ -1255,6 +1256,7 @@ const getElbowArrowData = (
     origStartGlobalPoint,
     hoveredStartElement,
     options?.isDragging,
+    options?.zoom,
   );
   const endGlobalPoint = getGlobalPoint(
     {
@@ -1268,6 +1270,7 @@ const getElbowArrowData = (
     origEndGlobalPoint,
     hoveredEndElement,
     options?.isDragging,
+    options?.zoom,
   );
   const startHeading = getBindPointHeading(
     startGlobalPoint,
@@ -2211,16 +2214,14 @@ const getGlobalPoint = (
   initialPoint: GlobalPoint,
   element?: ExcalidrawBindableElement | null,
   isDragging?: boolean,
+  zoom?: AppState["zoom"],
 ): GlobalPoint => {
   if (isDragging) {
-    if (element) {
-      const snapPoint = bindPointToSnapToElementOutline(
-        arrow,
+    if (element && getDistanceForBinding(initialPoint, element, true, zoom)) {
+      return snapToMid(
         element,
-        startOrEnd,
+        bindPointToSnapToElementOutline(arrow, element, startOrEnd),
       );
-
-      return snapToMid(element, snapPoint);
     }
 
     return initialPoint;
diff --git a/packages/excalidraw/actions/actionFinalize.tsx b/packages/excalidraw/actions/actionFinalize.tsx
index 63751d1f6f..9e3f69107f 100644
--- a/packages/excalidraw/actions/actionFinalize.tsx
+++ b/packages/excalidraw/actions/actionFinalize.tsx
@@ -148,7 +148,12 @@ export const actionFinalize = register({
         }
       }
 
-      if (isBindingElement(element) && !isLoop && element.points.length > 1) {
+      if (
+        isBindingElement(element) &&
+        !isLoop &&
+        element.points.length > 1 &&
+        !appState.selectedElementIds[element.id]
+      ) {
         const [x, y] = LinearElementEditor.getPointAtIndexGlobalCoordinates(
           element,
           -1,