diff --git a/lib/trading/position-manager.ts b/lib/trading/position-manager.ts
index 8844f5e..8dc36c3 100644
--- a/lib/trading/position-manager.ts
+++ b/lib/trading/position-manager.ts
@@ -317,8 +317,8 @@ export class PositionManager {
         console.log(`⚠️ Position ${trade.symbol} was closed externally (by on-chain order)`)
       } else {
         // Position exists - check if size changed (TP1/TP2 filled)
-        // CRITICAL FIX: position.size from Drift SDK is already in USD notional value
-        const positionSizeUSD = Math.abs(position.size) // Drift SDK returns negative for shorts
+        // CRITICAL FIX: position.size from Drift SDK is base asset tokens, must convert to USD
+        const positionSizeUSD = Math.abs(position.size) * currentPrice // Convert tokens to USD
         const trackedSizeUSD = trade.currentSize
         const sizeDiffPercent = Math.abs(positionSizeUSD - trackedSizeUSD) / trackedSizeUSD * 100
         
@@ -515,9 +515,12 @@ export class PositionManager {
         return
       }
       
+      // CRITICAL: Convert position.size (base asset tokens) to USD for comparison
+      const positionSizeUSD = Math.abs(position.size) * currentPrice
+      
       // Position exists but size mismatch (partial close by TP1?)
-      if (position.size < trade.currentSize * 0.95) { // 5% tolerance
-        console.log(`⚠️ Position size mismatch: expected ${trade.currentSize}, got ${position.size}`)
+      if (positionSizeUSD < trade.currentSize * 0.95) { // 5% tolerance
+        console.log(`⚠️ Position size mismatch: expected $${trade.currentSize.toFixed(2)}, got $${positionSizeUSD.toFixed(2)}`)
         
         // CRITICAL: Check if position direction changed (signal flip, not TP1!)
         const positionDirection = position.side === 'long' ? 'long' : 'short'
@@ -555,11 +558,11 @@ export class PositionManager {
         }
         
         // CRITICAL: If mismatch is extreme (>50%), this is a phantom trade
-        const sizeRatio = (position.size * currentPrice) / trade.currentSize
+        const sizeRatio = positionSizeUSD / trade.currentSize
         if (sizeRatio < 0.5) {
           console.log(`🚨 EXTREME SIZE MISMATCH (${(sizeRatio * 100).toFixed(1)}%) - Closing phantom trade`)
           console.log(`   Expected: $${trade.currentSize.toFixed(2)}`)
-          console.log(`   Actual: $${(position.size * currentPrice).toFixed(2)}`)
+          console.log(`   Actual: $${positionSizeUSD.toFixed(2)}`)
           
           // Close as phantom trade
           try {
@@ -587,8 +590,8 @@ export class PositionManager {
           return
         }
         
-        // Update current size to match reality (convert base asset size to USD using current price)
-        trade.currentSize = position.size * currentPrice
+        // Update current size to match reality (already in USD)
+        trade.currentSize = positionSizeUSD
         trade.tp1Hit = true
         await this.saveTradeState(trade)
       }