Fixes #32923

Author: minestarks

src/services/formatting/smartIndenter.ts

@@ -539,10 +539,14 @@ namespace ts.formatting {
                     return true;
                 case SyntaxKind.VariableDeclaration:
                 case SyntaxKind.PropertyAssignment:
+                case SyntaxKind.BinaryExpression:
                     if (!settings.indentMultiLineObjectLiteralBeginningOnBlankLine && sourceFile && childKind === SyntaxKind.ObjectLiteralExpression) { // TODO: GH#18217
                         return rangeIsOnOneLine(sourceFile, child!);
                     }
-                    return true;
+                    if (parent.kind !== SyntaxKind.BinaryExpression) {
+                        return true;
+                    }
+                    break;
                 case SyntaxKind.DoStatement:
                 case SyntaxKind.WhileStatement:
                 case SyntaxKind.ForInStatement:

tests/cases/fourslash/formattingObjectLiteralOpenCurlyNewlineAssignment.ts

@@ -0,0 +1,47 @@
+/// <reference path='fourslash.ts' />
+
+//// 
+//// var clear = {};
+//// clear =
+//// {
+////     outerKey:
+////     {
+////         innerKey: 1,
+////         innerKey2:
+////             2
+////     }
+//// };
+//// 
+
+format.document();
+verify.currentFileContentIs(
+`
+var clear = {};
+clear =
+{
+    outerKey:
+    {
+        innerKey: 1,
+        innerKey2:
+            2
+    }
+};
+`
+);
+
+format.setOption("indentMultiLineObjectLiteralBeginningOnBlankLine", true);
+format.document();
+verify.currentFileContentIs(
+`
+var clear = {};
+clear =
+    {
+        outerKey:
+            {
+                innerKey: 1,
+                innerKey2:
+                    2
+            }
+    };
+`
+);