diff --git a/app/api/trading/position-manager-debug/route.ts b/app/api/trading/position-manager-debug/route.ts
new file mode 100644
index 0000000..3087e17
--- /dev/null
+++ b/app/api/trading/position-manager-debug/route.ts
@@ -0,0 +1,107 @@
+import { NextRequest, NextResponse } from 'next/server'
+import { getInitializedPositionManager } from '@/lib/trading/position-manager'
+import { getDriftService } from '@/lib/drift/client'
+import { getOpenTrades } from '@/lib/database/trades'
+
+/**
+ * Position Manager Debug Endpoint
+ * 
+ * Returns internal runtime state for verification
+ * 
+ * Created: Dec 13, 2025
+ * Purpose: Enable 100% verification of Position Manager protection
+ */
+export async function GET(request: NextRequest) {
+  try {
+    // Get Position Manager singleton
+    const pm = await getInitializedPositionManager()
+    const pmState = (pm as any)
+    
+    // Extract internal state
+    const activeTrades = pmState.activeTrades
+    const isMonitoring = pmState.isMonitoring || false
+    const priceMonitor = pmState.priceMonitor
+    
+    // Convert Map to array for JSON serialization
+    const tradesList = activeTrades ? Array.from(activeTrades.entries()).map((entry: any) => {
+      const [id, trade] = entry as [string, any]
+      return {
+        id,
+        symbol: trade.symbol,
+        direction: trade.direction,
+        entryPrice: trade.entryPrice,
+        currentSize: trade.currentSize,
+        tp1Hit: trade.tp1Hit,
+        tp2Hit: trade.tp2Hit,
+        slMovedToBreakeven: trade.slMovedToBreakeven,
+        trailingStopActive: trade.trailingStopActive,
+        createdAt: trade.createdAt,
+      }
+    }) : []
+    
+    // Get database state
+    const dbTrades = await getOpenTrades()
+    
+    // Get Drift positions
+    const driftService = getDriftService()
+    const driftPositions = await driftService.getAllPositions()
+    const openDriftPositions = driftPositions.filter(p => Math.abs(p.size) > 0)
+    
+    // Check price monitor state
+    const priceMonitorState = priceMonitor ? {
+      isRunning: typeof priceMonitor.start === 'function',
+      hasSymbols: priceMonitor.symbols?.length > 0 || false,
+      symbolsList: priceMonitor.symbols || [],
+    } : {
+      isRunning: false,
+      hasSymbols: false,
+      symbolsList: [],
+    }
+    
+    return NextResponse.json({
+      success: true,
+      timestamp: new Date().toISOString(),
+      positionManager: {
+        isMonitoring,
+        activeTradesCount: tradesList.length,
+        activeTrades: tradesList,
+      },
+      priceMonitor: priceMonitorState,
+      database: {
+        openTradesCount: dbTrades.length,
+        openTrades: dbTrades.map(t => ({
+          id: t.id,
+          symbol: t.symbol,
+          direction: t.direction,
+          entryPrice: t.entryPrice,
+          positionSizeUSD: t.positionSizeUSD,
+          createdAt: t.createdAt,
+        })),
+      },
+      drift: {
+        positionsCount: openDriftPositions.length,
+        positions: openDriftPositions.map(p => ({
+          symbol: p.symbol,
+          size: p.size,
+          entryPrice: p.entryPrice,
+        })),
+      },
+      // Status summary
+      status: {
+        pmHasTrades: tradesList.length > 0,
+        pmMonitoringFlag: isMonitoring,
+        dbHasTrades: dbTrades.length > 0,
+        driftHasPositions: openDriftPositions.length > 0,
+        // THE CRITICAL CHECK: Does PM have the trade that's in DB and Drift?
+        allInSync: tradesList.length === dbTrades.length && tradesList.length === openDriftPositions.length,
+      }
+    })
+    
+  } catch (error) {
+    console.error('❌ Position Manager debug error:', error)
+    return NextResponse.json({
+      success: false,
+      error: error instanceof Error ? error.message : String(error),
+    }, { status: 500 })
+  }
+}
diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index 72ae1e6..965e409 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -654,6 +654,11 @@ export class PositionManager {
     const tradesForSymbol = Array.from(this.activeTrades.values())
       .filter(trade => trade.symbol === update.symbol)
 
+    // BUG #77 FIX: Log price updates so we can verify monitoring loop is running
+    if (tradesForSymbol.length > 0) {
+      console.log(`🔍 Price check: ${update.symbol} @ $${update.price.toFixed(2)} (${tradesForSymbol.length} trades)`)
+    }
+
     for (const trade of tradesForSymbol) {
       try {
         await this.checkTradeConditions(trade, update.price)
@@ -686,15 +691,12 @@ export class PositionManager {
     // CRITICAL: First check if on-chain position still exists
     // (may have been closed by TP/SL orders without us knowing)
     try {
+      // BUG #77 FIX (Dec 13, 2025): Don't skip price checks if Drift not initialized
+      // This early return was causing monitoring to never run!
+      // Position Manager price checking loop must run even if external closure detection is temporarily unavailable
+      // Let the external closure check fail gracefully later if Drift unavailable
       const driftService = getDriftService()
       
-      // Skip position verification if Drift service isn't initialized yet
-      // (happens briefly after restart while service initializes)
-      if (!driftService || !(driftService as any).isInitialized) {
-        // Service still initializing, skip this check cycle
-        return
-      }
-      
       const marketConfig = getMarketConfig(trade.symbol)
       const position = await driftService.getPosition(marketConfig.driftMarketIndex)