diff --git a/src/Verify.Tests/Converters/ExtensionConverterTests.InvalidFileCharactersInName#name/a/b-c.verified.txt b/src/Verify.Tests/Converters/ExtensionConverterTests.InvalidFileCharactersInName#name/a/b-c.verified.txt
deleted file mode 100644
index 3c877c57a0..0000000000
--- a/src/Verify.Tests/Converters/ExtensionConverterTests.InvalidFileCharactersInName#name/a/b-c.verified.txt
+++ /dev/null
@@ -1 +0,0 @@
-value
\ No newline at end of file
diff --git a/src/Verify.Tests/Naming/MatchingFileFinderTests.cs b/src/Verify.Tests/Naming/MatchingFileFinderTests.cs
index 056fa9a7d6..28b38caf8a 100644
--- a/src/Verify.Tests/Naming/MatchingFileFinderTests.cs
+++ b/src/Verify.Tests/Naming/MatchingFileFinderTests.cs
@@ -44,4 +44,49 @@ public void StrayFileWithNoExtensionIsIgnored()
         Assert.Single(found);
         Assert.EndsWith("SomeTest.verified.txt", found[0]);
     }
+
+    // A target name can contain a directory separator, which puts the file below a
+    // `{prefix}#` directory where a flat scan cannot see it
+    [Fact]
+    public void FindVerifiedIncludesNested()
+    {
+        using var directory = new TempDirectory();
+        File.WriteAllText(directory.BuildPath("SomeTest.verified.txt"), "a");
+        var nested = WriteNested(directory, "SomeTest#sub", "inner", "file.verified.txt");
+        // not a file Verify writes, and the `.*` in the search pattern matches it
+        WriteNested(directory, "SomeTest#sub", "extensionless.verified");
+        // a different test that happens to start with the same text
+        var otherNested = WriteNested(directory, "SomeTestOther#sub", "file.verified.txt");
+
+        var found = MatchingFileFinder.FindVerified("SomeTest", directory)
+            .ToList();
+
+        Assert.Equal(2, found.Count);
+        Assert.Contains(nested, found);
+        Assert.DoesNotContain(otherNested, found);
+    }
+
+    [Fact]
+    public void DeleteReceivedIncludesNested()
+    {
+        using var directory = new TempDirectory();
+        var nestedReceived = WriteNested(directory, "SomeTest#sub", "inner", "file.received.txt");
+        var nestedVerified = WriteNested(directory, "SomeTest#sub", "inner", "file.verified.txt");
+        var otherReceived = WriteNested(directory, "SomeTestOther#sub", "file.received.txt");
+
+        MatchingFileFinder.DeleteReceived("SomeTest", directory);
+
+        Assert.False(File.Exists(nestedReceived));
+        // only received files are swept, and only for this test
+        Assert.True(File.Exists(nestedVerified));
+        Assert.True(File.Exists(otherReceived));
+    }
+
+    static string WriteNested(TempDirectory directory, params string[] segments)
+    {
+        var path = Path.Combine([directory.Path, ..segments]);
+        Directory.CreateDirectory(Path.GetDirectoryName(path)!);
+        File.WriteAllText(path, "content");
+        return path;
+    }
 }
diff --git a/src/Verify/Naming/MatchingFileFinder.cs b/src/Verify/Naming/MatchingFileFinder.cs
index a7169fc64a..22a4e117a3 100644
--- a/src/Verify/Naming/MatchingFileFinder.cs
+++ b/src/Verify/Naming/MatchingFileFinder.cs
@@ -1,25 +1,17 @@
-static class MatchingFileFinder
+static class MatchingFileFinder
 {
     public static void DeleteReceived(string fileNamePrefix, string directory)
     {
-        foreach (var file in Find(
-                     directory,
-                     searchPattern: $"{fileNamePrefix}*.received.*",
-                     nonIndexedPattern: $"{fileNamePrefix}.received.",
-                     indexedPattern: $"{fileNamePrefix}#"))
+        foreach (var file in Find(directory, fileNamePrefix, "received"))
         {
             IoHelpers.DeleteFile(file);
         }
     }
 
     public static IEnumerable<string> FindVerified(string fileNamePrefix, string directory) =>
-        Find(
-            directory,
-            searchPattern: $"{fileNamePrefix}*.verified.*",
-            nonIndexedPattern: $"{fileNamePrefix}.verified.",
-            indexedPattern: $"{fileNamePrefix}#");
+        Find(directory, fileNamePrefix, "verified");
 
-    static List<string> Find(string directory, string searchPattern, string nonIndexedPattern, string indexedPattern)
+    static List<string> Find(string directory, string fileNamePrefix, string marker)
     {
         // Directory.EnumerateFiles inserts a separator only when the directory
         // does not already end with one, so the file-name offset depends on
@@ -32,10 +24,13 @@ static List<string> Find(string directory, string searchPattern, string nonIndex
             startIndex++;
         }
 
+        var indexedPattern = $"{fileNamePrefix}#";
+        var nonIndexedPattern = $"{fileNamePrefix}.{marker}.";
+
         var list = new List<string>();
         var nonIndexedPatternSpan = nonIndexedPattern.AsSpan();
         var indexedPatternSpan = indexedPattern.AsSpan();
-        foreach (var file in Directory.EnumerateFiles(directory, searchPattern))
+        foreach (var file in Directory.EnumerateFiles(directory, $"{fileNamePrefix}*.{marker}.*"))
         {
             var fileSpan = file.AsSpan();
             if (fileSpan.SubStringEquals(nonIndexedPatternSpan, startIndex) ||
@@ -45,9 +40,39 @@ static List<string> Find(string directory, string searchPattern, string nonIndex
             }
         }
 
+        AddNested(directory, indexedPattern, marker, list);
+
         return list;
     }
 
+    /// <summary>
+    /// A target name can contain a directory separator: VerifyDirectory names each target
+    /// after its path within the tree, and SanitizeFilePath deliberately keeps separators.
+    /// The file for such a target lives under a `{prefix}#` directory, which the flat scan
+    /// cannot see, so without this its verified file is never tracked and a stale one
+    /// survives every run.
+    /// </summary>
+    static void AddNested(string directory, string indexedPattern, string marker, List<string> list)
+    {
+        var markerSegment = $".{marker}.";
+        // The directory name carries the prefix, so everything below it belongs to this
+        // test. A neighbouring test that merely starts with the same text has its own
+        // `{itsPrefix}#` directory, which this pattern excludes.
+        foreach (var subDirectory in Directory.EnumerateDirectories(directory, $"{indexedPattern}*"))
+        {
+            foreach (var file in Directory.EnumerateFiles(subDirectory, $"*{markerSegment}*", SearchOption.AllDirectories))
+            {
+                // The Win32 pattern also matches a name ending in `.verified` with no
+                // extension, which is not a file Verify writes.
+                if (Path.GetFileName(file)
+                    .Contains(markerSegment))
+                {
+                    list.Add(file);
+                }
+            }
+        }
+    }
+
     static bool SubStringEquals(this CharSpan value, CharSpan match, int start)
     {
         // The Win32 search pattern `{prefix}*.received.*` also matches a stray file named
@@ -61,4 +86,4 @@ static bool SubStringEquals(this CharSpan value, CharSpan match, int start)
         var slice = value.Slice(start, match.Length);
         return slice.SequenceEqual(match);
     }
-}
\ No newline at end of file
+}