diff --git a/lib/monitoring/drift-state-verifier.ts b/lib/monitoring/drift-state-verifier.ts
index 4580589..89a8ee6 100644
--- a/lib/monitoring/drift-state-verifier.ts
+++ b/lib/monitoring/drift-state-verifier.ts
@@ -215,11 +215,39 @@ class DriftStateVerifier {
 
   /**
    * Retry closing a position that should be closed but isn't
+   * CRITICAL FIX (Dec 9, 2025): Stop retry loop if close transaction confirms
    */
   private async retryClose(mismatch: DriftStateMismatch): Promise<void> {
     console.log(`🔄 Retrying close for ${mismatch.symbol}...`)
 
     try {
+      // CRITICAL: Check if this trade already has a close attempt in progress
+      // If we recently tried to close (within 5 minutes), SKIP to avoid retry loop
+      const prisma = getPrismaClient()
+      const trade = await prisma.trade.findUnique({
+        where: { id: mismatch.tradeId },
+        select: { 
+          exitOrderTx: true,
+          exitReason: true,
+          configSnapshot: true 
+        }
+      })
+      
+      if (trade?.configSnapshot) {
+        const snapshot = trade.configSnapshot as any
+        const lastRetryTime = snapshot.retryCloseTime ? new Date(snapshot.retryCloseTime) : null
+        
+        if (lastRetryTime) {
+          const timeSinceRetry = Date.now() - lastRetryTime.getTime()
+          
+          // If we retried within last 5 minutes, SKIP (Drift propagation delay)
+          if (timeSinceRetry < 5 * 60 * 1000) {
+            console.log(`   ⏳ Skipping retry - last attempt ${(timeSinceRetry / 1000).toFixed(0)}s ago (Drift propagation delay)`)
+            return
+          }
+        }
+      }
+
       const result = await closePosition({
         symbol: mismatch.symbol,
         percentToClose: 100,
@@ -227,21 +255,18 @@ class DriftStateVerifier {
       })
 
       if (result.success) {
-        console.log(`   ✅ Successfully closed ${mismatch.symbol}`)
+        console.log(`   ✅ Close transaction confirmed: ${result.transactionSignature}`)
         console.log(`   P&L: $${result.realizedPnL?.toFixed(2) || 0}`)
+        console.log(`   ⏳ Drift API may take up to 5 minutes to reflect closure`)
         
-        // Update database with retry close info
-        const prisma = getPrismaClient()
+        // Update database with retry close timestamp to prevent loop
         await prisma.trade.update({
           where: { id: mismatch.tradeId },
           data: {
             exitOrderTx: result.transactionSignature || 'RETRY_CLOSE',
             realizedPnL: result.realizedPnL || 0,
             configSnapshot: {
-              ...(await prisma.trade.findUnique({
-                where: { id: mismatch.tradeId },
-                select: { configSnapshot: true }
-              }))?.configSnapshot as any,
+              ...trade?.configSnapshot as any,
               retryCloseAttempted: true,
               retryCloseTime: new Date().toISOString(),
             }