diff --git a/packages/hal/src/validators/ebds/ebds-fsm.ts b/packages/hal/src/validators/ebds/ebds-fsm.ts
index ea4b4a8..e48f041 100644
--- a/packages/hal/src/validators/ebds/ebds-fsm.ts
+++ b/packages/hal/src/validators/ebds/ebds-fsm.ts
@@ -11,16 +11,48 @@
  */
 
 import { EventEmitter } from 'node:events'
-import type { ParseResult } from './ebds-rs232.js'
+import type { DestructedData, ParseResult } from './ebds-rs232.js'
 
 // MEI's internal escrow grace expires around 5s. We want any escrow that
 // sits open for >500ms (5× our 100ms poll cadence) to surface in field
 // logs so we can spot drift toward the autonomous-return failure mode.
 const ESCROW_WATCHDOG_WARN_MS = 500
 
+/**
+ * Recognise the "phantom escrow at boot" signature: MEI reports a bill in
+ * escrow while its post-boot handshake (powerup flag) hasn't completed.
+ *
+ * Observed on Austin batm3 2026-06-01: the unit had been in this state
+ * since 2026-05-25, refusing all subsequent bills because MEI thought a
+ * (long-removed) bill was waiting in escrow for a stack/reject decision.
+ *
+ * Guards exclude every state where issuing a reject would be unsafe:
+ *   - `jammed` / `stalled` / `failure` / `transportOpen` — physical issue,
+ *     reject's motor sequence could grind debris and worsen damage
+ *   - `stackerFull` — escrowed bill could be a real customer bill we owe
+ *     credit for; returning it would drop money on the floor
+ *   - `powerup` MUST be set — this is the precise post-boot-stuck
+ *     signature. A normal in-progress transaction has powerup already
+ *     cleared by the time a bill reaches escrow.
+ */
+function isPhantomEscrowSignature(dd: DestructedData | null | undefined): boolean {
+  if (!dd) return false
+  const [byte0, byte1, byte2, byte3] = dd
+  return (
+    byte0.escrowed &&
+    byte2.powerup &&
+    !byte1.jammed &&
+    !byte3.stalled &&
+    !byte2.failure &&
+    !byte2.transportOpen &&
+    !byte1.stackerFull
+  )
+}
+
 export class EbdsFsm extends EventEmitter {
   private currentStatus: string | null = null
   private escrowOpenedAt: number | null = null
+  private firstMessageProcessed: boolean = false
 
   constructor() {
     super()
@@ -32,9 +64,25 @@ export class EbdsFsm extends EventEmitter {
 
   /** Process a parsed EBDS message and emit status change events */
   process(result: ParseResult, fiatCode: string | null): void {
-    const { status, bill } = result
+    const { status, bill, destructedData } = result
     if (!status) return
 
+    // First-message phantom-escrow heuristic. Runs once per service start.
+    // If MEI is reporting the post-boot-stuck signature, fire a reject to
+    // clear the stale state before our FSM transitions into billsRead and
+    // emits spurious billsAccepted/billsRead events upstream.
+    if (!this.firstMessageProcessed) {
+      this.firstMessageProcessed = true
+      if (isPhantomEscrowSignature(destructedData)) {
+        console.warn(
+          '[EBDS] phantom escrow at boot (escrowed + powerup, no error flags). ' +
+            'Auto-rejecting to clear stale state — no transaction in flight.'
+        )
+        this.emit('reject')
+        return
+      }
+    }
+
     // Ignore duplicate statuses (EBDS polls continuously)
     if (this.currentStatus === status) return
     // Blank stacks happen on power up or cassette re-insertion — ignore
@@ -135,5 +183,6 @@ export class EbdsFsm extends EventEmitter {
   reset(): void {
     this.currentStatus = null
     this.escrowOpenedAt = null
+    this.firstMessageProcessed = false
   }
 }