diff --git a/lib/drift/orders.ts b/lib/drift/orders.ts
index f679398..458e9ff 100644
--- a/lib/drift/orders.ts
+++ b/lib/drift/orders.ts
@@ -46,6 +46,8 @@ export interface ClosePositionResult {
   closePrice?: number
   closedSize?: number
   realizedPnL?: number
+  fullyClosed?: boolean
+  remainingSize?: number
   error?: string
 }
 
@@ -602,13 +604,21 @@ export async function closePosition(
     console.log(`   Closed notional: $${closedNotional.toFixed(2)}`)
     console.log(`   Realized P&L: $${realizedPnL.toFixed(2)}`)
     
-    // If closing 100%, cancel all remaining orders for this market
-    if (params.percentToClose === 100) {
+    // Check remaining position size after close
+    const updatedPosition = await driftService.getPosition(marketConfig.driftMarketIndex)
+    const remainingSize = updatedPosition ? Math.abs(updatedPosition.size) : 0
+    const fullyClosed = !updatedPosition || remainingSize === 0
+
+    if (fullyClosed) {
       console.log('🗑️ Position fully closed, cancelling remaining orders...')
       const cancelResult = await cancelAllOrders(params.symbol)
-      if (cancelResult.success && cancelResult.cancelledCount! > 0) {
+      if (cancelResult.success && (cancelResult.cancelledCount || 0) > 0) {
         console.log(`✅ Cancelled ${cancelResult.cancelledCount} orders`)
       }
+    } else if (params.percentToClose === 100) {
+      console.log(
+        `⚠️ Requested 100% close but ${remainingSize.toFixed(4)} base remains on-chain`
+      )
     }
     
     return {
@@ -617,6 +627,8 @@ export async function closePosition(
       closePrice: oraclePrice,
       closedSize: sizeToClose,
       realizedPnL,
+      fullyClosed,
+      remainingSize,
     }
     
   } catch (error) {
diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index 3a8e277..5cfa700 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -682,7 +682,7 @@ export class PositionManager {
     }
 
     // 5. Take profit 2 (remaining position)
-    if (trade.tp1Hit && this.shouldTakeProfit2(currentPrice, trade)) {
+    if (trade.tp1Hit && !trade.tp2Hit && this.shouldTakeProfit2(currentPrice, trade)) {
       console.log(`🎊 TP2 HIT: ${trade.symbol} at ${profitPercent.toFixed(2)}%`)
       
       // Calculate how much to close based on TP2 size percent
@@ -776,18 +776,31 @@ export class PositionManager {
         return
       }
 
+      const closePriceForCalc = result.closePrice || currentPrice
+      const closedSizeBase = result.closedSize || 0
+      const closedUSD = closedSizeBase * closePriceForCalc
+      const wasForcedFullClose = !!result.fullyClosed && percentToClose < 100
+      const treatAsFullClose = percentToClose >= 100 || result.fullyClosed
+
       // Update trade state
-      if (percentToClose >= 100) {
-        // Full close - remove from monitoring
+      if (treatAsFullClose) {
         trade.realizedPnL += result.realizedPnL || 0
-        
-        // Save to database (only for valid exit reasons)
+        trade.currentSize = 0
+        trade.trailingStopActive = false
+
+        if (reason === 'TP2') {
+          trade.tp2Hit = true
+        }
+        if (reason === 'TP1') {
+          trade.tp1Hit = true
+        }
+
         if (reason !== 'error') {
           try {
             const holdTimeSeconds = Math.floor((Date.now() - trade.entryTime) / 1000)
             await updateTradeExit({
               positionId: trade.positionId,
-              exitPrice: result.closePrice || currentPrice,
+              exitPrice: closePriceForCalc,
               exitReason: reason as 'TP1' | 'TP2' | 'SL' | 'SOFT_SL' | 'HARD_SL' | 'manual' | 'emergency',
               realizedPnL: trade.realizedPnL,
               exitOrderTx: result.transactionSignature || 'MANUAL_CLOSE',
@@ -802,22 +815,22 @@ export class PositionManager {
             console.log('💾 Trade saved to database')
           } catch (dbError) {
             console.error('❌ Failed to save trade exit to database:', dbError)
-            // Don't fail the close if database fails
           }
         }
-        
+
         await this.removeTrade(trade.id)
-        console.log(`✅ Position closed | P&L: $${trade.realizedPnL.toFixed(2)} | Reason: ${reason}`)
+        const closeLabel = wasForcedFullClose
+          ? '✅ Forced full close (below Drift minimum)'
+          : '✅ Position closed'
+        console.log(`${closeLabel} | P&L: $${trade.realizedPnL.toFixed(2)} | Reason: ${reason}`)
       } else {
         // Partial close (TP1)
         trade.realizedPnL += result.realizedPnL || 0
-        // result.closedSize is returned in base asset units (e.g., SOL), convert to USD using closePrice
-        const closePriceForCalc = result.closePrice || currentPrice
-        const closedSizeBase = result.closedSize || 0
-        const closedUSD = closedSizeBase * closePriceForCalc
         trade.currentSize = Math.max(0, trade.currentSize - closedUSD)
 
-        console.log(`✅ Partial close executed | Realized: $${(result.realizedPnL || 0).toFixed(2)} | Closed (base): ${closedSizeBase.toFixed(6)} | Closed (USD): $${closedUSD.toFixed(2)} | Remaining USD: $${trade.currentSize.toFixed(2)}`)
+        console.log(
+          `✅ Partial close executed | Realized: $${(result.realizedPnL || 0).toFixed(2)} | Closed (base): ${closedSizeBase.toFixed(6)} | Closed (USD): $${closedUSD.toFixed(2)} | Remaining USD: $${trade.currentSize.toFixed(2)}`
+        )
       }
 
       // TODO: Send notification