diff --git a/cadence/tests/forked_rebalance_scenario2_test.cdc b/cadence/tests/forked_rebalance_scenario2_test.cdc
new file mode 100644
index 00000000..8de34708
--- /dev/null
+++ b/cadence/tests/forked_rebalance_scenario2_test.cdc
@@ -0,0 +1,422 @@
+#test_fork(network: "mainnet-fork", height: 143292255)
+
+import Test
+import BlockchainHelpers
+
+import "test_helpers.cdc"
+import "evm_state_helpers.cdc"
+
+import "FlowToken"
+import "MOET"
+import "FlowYieldVaultsStrategiesV2"
+import "FlowALPv0"
+import "FlowYieldVaults"
+
+
+// ============================================================================
+// CADENCE ACCOUNTS
+// ============================================================================
+
+access(all) let flowYieldVaultsAccount = Test.getAccount(0xb1d63873c3cc9f79)
+access(all) let flowALPAccount = Test.getAccount(0x6b00ff876c299c61)
+access(all) let bandOracleAccount = Test.getAccount(0x6801a6222ebf784a)
+access(all) let whaleFlowAccount = Test.getAccount(0x92674150c9213fc9)
+access(all) let coaOwnerAccount = Test.getAccount(0xe467b9dd11fa00df)
+
+access(all) var strategyIdentifier = Type<@FlowYieldVaultsStrategiesV2.FUSDEVStrategy>().identifier
+access(all) var flowTokenIdentifier = Type<@FlowToken.Vault>().identifier
+access(all) var moetTokenIdentifier = Type<@MOET.Vault>().identifier
+
+// ============================================================================
+// PROTOCOL ADDRESSES
+// ============================================================================
+
+// Uniswap V3 Factory on Flow EVM mainnet
+access(all) let factoryAddress = "0xca6d7Bb03334bBf135902e1d919a5feccb461632"
+
+// ============================================================================
+// VAULT & TOKEN ADDRESSES
+// ============================================================================
+
+// FUSDEV - Morpho VaultV2 (ERC4626)
+// Underlying asset: PYUSD0
+access(all) let morphoVaultAddress = "0xd069d989e2F44B70c65347d1853C0c67e10a9F8D"
+
+// PYUSD0 - Stablecoin (FUSDEV's underlying asset)
+access(all) let pyusd0Address = "0x99aF3EeA856556646C98c8B9b2548Fe815240750"
+
+// MOET - Flow ALP USD
+access(all) let moetAddress = "0x213979bB8A9A86966999b3AA797C1fcf3B967ae2"
+
+// WFLOW - Wrapped Flow
+access(all) let wflowAddress = "0xd3bF53DAC106A0290B0483EcBC89d40FcC961f3e"
+
+// ============================================================================
+// STORAGE SLOT CONSTANTS
+// ============================================================================
+
+// Token balanceOf mapping slots (for EVM.store to manipulate balances)
+access(all) let moetBalanceSlot = 0 as UInt256
+access(all) let pyusd0BalanceSlot = 1 as UInt256
+access(all) let fusdevBalanceSlot = 12 as UInt256 
+access(all) let wflowBalanceSlot = 3 as UInt256
+
+// Morpho vault storage slots
+access(all) let morphoVaultTotalSupplySlot = 11 as UInt256
+access(all) let morphoVaultTotalAssetsSlot = 15 as UInt256
+
+access(all)
+fun setup() {
+    // Deploy all contracts for mainnet fork
+    deployContractsForFork()
+
+    // Setup Uniswap V3 pools with structurally valid state
+    // This sets slot0, observations, liquidity, ticks, bitmap, positions, and POOL token balances
+    setPoolToPrice(
+        factoryAddress: factoryAddress,
+        tokenAAddress: pyusd0Address,
+        tokenBAddress: morphoVaultAddress,
+        fee: 100,
+        priceTokenBPerTokenA: feeAdjustedPrice(1.0, fee: 100, reverse: false),
+        tokenABalanceSlot: pyusd0BalanceSlot,
+        tokenBBalanceSlot: fusdevBalanceSlot,
+        signer: coaOwnerAccount
+    )
+
+    setPoolToPrice(
+        factoryAddress: factoryAddress,
+        tokenAAddress: pyusd0Address,
+        tokenBAddress: wflowAddress,
+        fee: 3000,
+        priceTokenBPerTokenA: feeAdjustedPrice(1.0, fee: 3000, reverse: false),
+        tokenABalanceSlot: pyusd0BalanceSlot,
+        tokenBBalanceSlot: wflowBalanceSlot,
+        signer: coaOwnerAccount
+    )
+
+    setPoolToPrice(
+        factoryAddress: factoryAddress,
+        tokenAAddress: moetAddress,
+        tokenBAddress: morphoVaultAddress,
+        fee: 100,
+        priceTokenBPerTokenA: feeAdjustedPrice(1.0, fee: 100, reverse: false),
+        tokenABalanceSlot: moetBalanceSlot,
+        tokenBBalanceSlot: fusdevBalanceSlot,
+        signer: coaOwnerAccount
+    )
+
+    setPoolToPrice(
+        factoryAddress: factoryAddress,
+        tokenAAddress: moetAddress,
+        tokenBAddress: pyusd0Address,
+        fee: 100,
+        priceTokenBPerTokenA: feeAdjustedPrice(1.0, fee: 100, reverse: false),
+        tokenABalanceSlot: moetBalanceSlot,
+        tokenBBalanceSlot: pyusd0BalanceSlot,
+        signer: coaOwnerAccount
+    )
+
+    // BandOracle is used for FLOW and USD (MOET) prices
+    let symbolPrices = { 
+        "FLOW": 1.0,
+        "USD": 1.0
+    }
+    setBandOraclePrices(signer: bandOracleAccount, symbolPrices: symbolPrices)
+
+	// mint tokens & set liquidity in mock swapper contract
+	let reserveAmount = 100_000_00.0
+	// service account does not have enough flow to "mint"
+	// var mintFlowResult = mintFlow(to: flowCreditMarketAccount, amount: reserveAmount)
+    // Test.expect(mintFlowResult, Test.beSucceeded())
+    transferFlow(signer: whaleFlowAccount, recipient: flowALPAccount.address, amount: reserveAmount)
+
+	mintMoet(signer: flowALPAccount, to: flowALPAccount.address, amount: reserveAmount, beFailed: false)
+
+    // Grant FlowALPv1 Pool capability to FlowYieldVaults account
+    let protocolBetaRes = grantProtocolBeta(flowALPAccount, flowYieldVaultsAccount)
+    Test.expect(protocolBetaRes, Test.beSucceeded())
+
+	// Fund FlowYieldVaults account for scheduling fees (atomic initial scheduling)
+    // service account does not have enough flow to "mint"
+	// mintFlowResult = mintFlow(to: flowYieldVaultsAccount, amount: 100.0)
+    // Test.expect(mintFlowResult, Test.beSucceeded())
+    transferFlow(signer: whaleFlowAccount, recipient: flowYieldVaultsAccount.address, amount: 100.0)
+}
+
+/// Logs full position details (all balances with direction, health, etc.)
+access(all)
+fun logPositionDetails(label: String, pid: UInt64) {
+    let positionDetails = getPositionDetails(pid: pid, beFailed: false)
+    log("\n--- Position Details (\(label)) pid=\(pid) ---")
+    log("  health: \(positionDetails.health)")
+    log("  defaultTokenAvailableBalance: \(positionDetails.defaultTokenAvailableBalance)")
+    for balance in positionDetails.balances {
+        let direction = balance.direction.rawValue == 0 ? "CREDIT(collateral)" : "DEBIT(debt)"
+        log("  [\(direction)] \(balance.vaultType.identifier): \(balance.balance)")
+    }
+    log("--- End Position Details ---")
+}
+
+access(all)
+fun test_RebalanceYieldVaultScenario2() {
+	// Test.reset(to: snapshot)
+
+	let fundingAmount = 1000.0
+
+	let user = Test.createAccount()
+
+	let yieldPriceIncreases = [1.1, 1.2, 1.3, 1.5, 2.0, 3.0]
+	let expectedFlowBalance = [
+		1061.53846154,
+		1120.92522862,
+		1178.40857368,
+		1289.97388243,
+		1554.58390959,
+		2032.91742023
+	]
+
+	// Likely 0.0
+	let flowBalanceBefore = getBalance(address: user.address, vaultPublicPath: /public/flowTokenReceiver)!
+	transferFlow(signer: whaleFlowAccount, recipient: user.address, amount: fundingAmount)
+    grantBeta(flowYieldVaultsAccount, user)
+
+    // Set vault to baseline 1:1 price
+    setVaultSharePrice(
+        vaultAddress: morphoVaultAddress,
+        assetAddress: pyusd0Address,
+        assetBalanceSlot: pyusd0BalanceSlot,
+        totalSupplySlot: morphoVaultTotalSupplySlot,
+        vaultTotalAssetsSlot: morphoVaultTotalAssetsSlot,
+        priceMultiplier: 1.0,
+        signer: user
+    )
+
+	createYieldVault(
+		signer: user,
+		strategyIdentifier: strategyIdentifier,
+		vaultIdentifier: flowTokenIdentifier,
+		amount: fundingAmount,
+		beFailed: false
+	)
+
+    // Capture the actual position ID from the FlowCreditMarket.Opened event
+	var pid = (getLastPositionOpenedEvent(Test.eventsOfType(Type<FlowALPv0.Opened>())) as! FlowALPv0.Opened).pid
+	log("[TEST] Captured Position ID from event: \(pid)")
+
+	var yieldVaultIDs = getYieldVaultIDs(address: user.address)
+	log("[TEST] YieldVault ID: \(yieldVaultIDs![0])")
+	Test.assert(yieldVaultIDs != nil, message: "Expected user's YieldVault IDs to be non-nil but encountered nil")
+	Test.assertEqual(1, yieldVaultIDs!.length)
+
+	var yieldVaultBalance = getYieldVaultBalance(address: user.address, yieldVaultID: yieldVaultIDs![0])
+
+	log("[TEST] Initial yield vault balance: \(yieldVaultBalance ?? 0.0)")
+
+	rebalanceYieldVault(signer: flowYieldVaultsAccount, id: yieldVaultIDs![0], force: true, beFailed: false)
+	rebalancePosition(signer: flowALPAccount, pid: pid, force: true, beFailed: false)
+
+	for index, yieldTokenPrice in yieldPriceIncreases {
+		yieldVaultBalance = getYieldVaultBalance(address: user.address, yieldVaultID: yieldVaultIDs![0])
+
+		log("[TEST] YieldVault balance before yield price \(yieldTokenPrice): \(yieldVaultBalance ?? 0.0)")
+
+        setVaultSharePrice(
+            vaultAddress: morphoVaultAddress,
+            assetAddress: pyusd0Address,
+            assetBalanceSlot: pyusd0BalanceSlot,
+            totalSupplySlot: morphoVaultTotalSupplySlot,
+            vaultTotalAssetsSlot: morphoVaultTotalAssetsSlot,
+            priceMultiplier: yieldTokenPrice,
+            signer: user
+        )
+
+        // Update FUSDEV pools
+        // Since FUSDEV is increasing in value we want to sell FUSDEV on the rebalance
+        // FUSDEV -> PYUSD0 -> WFLOW
+        setPoolToPrice(
+            factoryAddress: factoryAddress,
+            tokenAAddress: pyusd0Address,
+            tokenBAddress: morphoVaultAddress,
+            fee: 100,
+            priceTokenBPerTokenA: feeAdjustedPrice(1.0 / UFix128(yieldTokenPrice), fee: 100, reverse: true),
+            tokenABalanceSlot: pyusd0BalanceSlot,
+            tokenBBalanceSlot: fusdevBalanceSlot,
+            signer: coaOwnerAccount
+        )
+
+        // MOET -> FUSDEV
+        setPoolToPrice(
+            factoryAddress: factoryAddress,
+            tokenAAddress: moetAddress,
+            tokenBAddress: morphoVaultAddress,
+            fee: 100,
+            priceTokenBPerTokenA: feeAdjustedPrice(1.0 / UFix128(yieldTokenPrice), fee: 100, reverse: false),
+            tokenABalanceSlot: moetBalanceSlot,
+            tokenBBalanceSlot: fusdevBalanceSlot,
+            signer: coaOwnerAccount
+        )
+
+		yieldVaultBalance = getYieldVaultBalance(address: user.address, yieldVaultID: yieldVaultIDs![0])
+
+		log("[TEST] YieldVault balance before yield price \(yieldTokenPrice) rebalance: \(yieldVaultBalance ?? 0.0)")
+
+		rebalanceYieldVault(signer: flowYieldVaultsAccount, id: yieldVaultIDs![0], force: false, beFailed: false)
+		rebalancePosition(signer: flowALPAccount, pid: pid, force: false, beFailed: false)
+
+        // FUSDEV -> MOET for the yield balance check (we want to sell FUSDEV)
+        setPoolToPrice(
+            factoryAddress: factoryAddress,
+            tokenAAddress: moetAddress,
+            tokenBAddress: morphoVaultAddress,
+            fee: 100,
+            priceTokenBPerTokenA: feeAdjustedPrice(1.0 / UFix128(yieldTokenPrice), fee: 100, reverse: true),
+            tokenABalanceSlot: moetBalanceSlot,
+            tokenBBalanceSlot: fusdevBalanceSlot,
+            signer: coaOwnerAccount
+        )
+
+		yieldVaultBalance = getYieldVaultBalance(address: user.address, yieldVaultID: yieldVaultIDs![0])
+
+		log("[TEST] YieldVault balance after yield price \(yieldTokenPrice) rebalance: \(yieldVaultBalance ?? 0.0)")
+
+		// Perform comprehensive diagnostic precision trace
+		performDiagnosticPrecisionTrace(
+			yieldVaultID: yieldVaultIDs![0],
+			pid: pid,
+			yieldPrice: yieldTokenPrice,
+			expectedValue: expectedFlowBalance[index],
+			userAddress: user.address
+		)
+
+		// Get Flow collateral from position
+		let flowCollateralAmount = getFlowCollateralFromPosition(pid: pid)
+		let flowCollateralValue = flowCollateralAmount * 1.0  // Flow price remains at 1.0
+		
+		// Detailed precision comparison
+		let actualYieldVaultBalance = yieldVaultBalance ?? 0.0
+		let expectedBalance = expectedFlowBalance[index]
+		
+		// Calculate differences
+		let yieldVaultDiff = actualYieldVaultBalance > expectedBalance ? actualYieldVaultBalance - expectedBalance : expectedBalance - actualYieldVaultBalance
+		let yieldVaultSign = actualYieldVaultBalance > expectedBalance ? "+" : "-"
+		let yieldVaultPercentDiff = (yieldVaultDiff / expectedBalance) * 100.0
+
+		let positionDiff = flowCollateralValue > expectedBalance ? flowCollateralValue - expectedBalance : expectedBalance - flowCollateralValue
+		let positionSign = flowCollateralValue > expectedBalance ? "+" : "-"
+		let positionPercentDiff = (positionDiff / expectedBalance) * 100.0
+
+		let yieldVaultVsPositionDiff = actualYieldVaultBalance > flowCollateralValue ? actualYieldVaultBalance - flowCollateralValue : flowCollateralValue - actualYieldVaultBalance
+		let yieldVaultVsPositionSign = actualYieldVaultBalance > flowCollateralValue ? "+" : "-"
+		
+		log("\n=== PRECISION COMPARISON for Yield Price \(yieldTokenPrice) ===")
+		log("Expected Value:         \(expectedBalance)")
+		log("Actual YieldVault Balance:    \(actualYieldVaultBalance)")
+		log("Flow Position Value:    \(flowCollateralValue)")
+		log("Flow Position Amount:   \(flowCollateralAmount) tokens")
+		log("")
+		log("YieldVault vs Expected:       \(yieldVaultSign)\(yieldVaultDiff) (\(yieldVaultSign)\(yieldVaultPercentDiff)%)")
+		log("Position vs Expected:   \(positionSign)\(positionDiff) (\(positionSign)\(positionPercentDiff)%)")
+		log("YieldVault vs Position:       \(yieldVaultVsPositionSign)\(yieldVaultVsPositionDiff)")
+		log("===============================================\n")
+
+        let percentToleranceCheck = equalAmounts(a: yieldVaultPercentDiff, b: 0.0, tolerance: 0.01)
+        Test.assert(percentToleranceCheck, message: "Percent difference \(yieldVaultPercentDiff)% is not within tolerance \(0.01)%")
+	}
+
+	// closeYieldVault(signer: user, id: yieldVaultIDs![0], beFailed: false)
+
+	// let flowBalanceAfter = getBalance(address: user.address, vaultPublicPath: /public/flowTokenReceiver)!
+	// log("[TEST] flow balance after \(flowBalanceAfter)")
+
+	// Test.assert(
+	// 	(flowBalanceAfter-flowBalanceBefore) > 0.1,
+	// 	message: "Expected user's Flow balance after rebalance to be more than zero but got \(flowBalanceAfter)"
+	// )
+}
+
+// ============================================================================
+// HELPER FUNCTIONS
+// ============================================================================
+
+// Helper function to get Flow collateral from position
+access(all) fun getFlowCollateralFromPosition(pid: UInt64): UFix64 {
+    let positionDetails = getPositionDetails(pid: pid, beFailed: false)
+    for balance in positionDetails.balances {
+        if balance.vaultType == Type<@FlowToken.Vault>() {
+            // Credit means it's a deposit (collateral)
+            if balance.direction.rawValue == 0 {  // Credit = 0
+                return balance.balance
+            }
+        }
+    }
+    return 0.0
+}
+
+// Enhanced diagnostic precision tracking function with full call stack tracing
+access(all) fun performDiagnosticPrecisionTrace(
+    yieldVaultID: UInt64,
+    pid: UInt64,
+    yieldPrice: UFix64,
+    expectedValue: UFix64,
+    userAddress: Address
+) {
+    // Get position ground truth
+    let positionDetails = getPositionDetails(pid: pid, beFailed: false)
+    var flowAmount: UFix64 = 0.0
+    
+    for balance in positionDetails.balances {
+        if balance.vaultType.identifier == flowTokenIdentifier { 
+            if balance.direction.rawValue == 0 {  // Credit
+                flowAmount = balance.balance
+            }
+        }
+    }
+    
+    // Values at different layers
+    let positionValue = flowAmount * 1.0  // Flow price = 1.0 in Scenario 2
+    let yieldVaultValue = getYieldVaultBalance(address: userAddress, yieldVaultID: yieldVaultID) ?? 0.0
+
+    // Calculate drifts with proper sign handling
+    let yieldVaultDriftAbs = yieldVaultValue > expectedValue ? yieldVaultValue - expectedValue : expectedValue - yieldVaultValue
+    let yieldVaultDriftSign = yieldVaultValue > expectedValue ? "+" : "-"
+    let positionDriftAbs = positionValue > expectedValue ? positionValue - expectedValue : expectedValue - positionValue
+    let positionDriftSign = positionValue > expectedValue ? "+" : "-"
+    let yieldVaultVsPositionAbs = yieldVaultValue > positionValue ? yieldVaultValue - positionValue : positionValue - yieldVaultValue
+    let yieldVaultVsPositionSign = yieldVaultValue > positionValue ? "+" : "-"
+    
+    // Enhanced logging with intermediate values
+    log("\n+----------------------------------------------------------------+")
+    log("|          PRECISION DRIFT DIAGNOSTIC - Yield Price \(yieldPrice)         |")
+    log("+----------------------------------------------------------------+")
+    log("| Layer          | Value          | Drift         | % Drift      |")
+    log("|----------------|----------------|---------------|--------------|")
+    log("| Position       | \(formatValue(positionValue)) | \(positionDriftSign)\(formatValue(positionDriftAbs)) | \(positionDriftSign)\(formatPercent(positionDriftAbs / expectedValue))% |")
+    log("| YieldVault Balance   | \(formatValue(yieldVaultValue)) | \(yieldVaultDriftSign)\(formatValue(yieldVaultDriftAbs)) | \(yieldVaultDriftSign)\(formatPercent(yieldVaultDriftAbs / expectedValue))% |")
+    log("| Expected       | \(formatValue(expectedValue)) | ------------- | ------------ |")
+    log("|----------------|----------------|---------------|--------------|")
+    log("| YieldVault vs Position: \(yieldVaultVsPositionSign)\(formatValue(yieldVaultVsPositionAbs))                                   |")
+    log("+----------------------------------------------------------------+")
+    
+    // Log intermediate calculation values
+    log("\n== INTERMEDIATE VALUES TRACE:")
+    
+    // Log position balance details
+    log("- Position Balance Details:")
+    log("  * Flow Amount (trueBalance): \(flowAmount)")
+    
+    // Skip the problematic UInt256 conversion entirely to avoid overflow
+    log("- Expected Value Analysis:")
+    log("  * Expected UFix64: \(expectedValue)")
+    
+    // Log precision loss summary without complex calculations
+    log("- Precision Loss Summary:")
+    log("  * Position vs Expected: \(positionDriftSign)\(formatValue(positionDriftAbs)) (\(positionDriftSign)\(formatPercent(positionDriftAbs / expectedValue))%)")
+    log("  * YieldVault vs Expected: \(yieldVaultDriftSign)\(formatValue(yieldVaultDriftAbs)) (\(yieldVaultDriftSign)\(formatPercent(yieldVaultDriftAbs / expectedValue))%)")
+    log("  * Additional YieldVault Loss: \(yieldVaultVsPositionSign)\(formatValue(yieldVaultVsPositionAbs))")
+
+    // Warning if significant drift
+    if yieldVaultDriftAbs > 0.00000100 {
+        log("\n⚠️  WARNING: Significant precision drift detected!")
+    }
+}
+