diff --git a/migrations.py b/migrations.py
index 807292f..5489f96 100644
--- a/migrations.py
+++ b/migrations.py
@@ -575,3 +575,80 @@ async def m007_add_cassette_configs(db):
             PRIMARY KEY (machine_id, denomination)
         );
         """)
+
+
+async def m008_flip_cassette_configs_pk_to_position(db):
+    """Flip cassette_configs PK from (machine_id, denomination) to
+    (machine_id, position). The denomination-keyed shape from m007 was
+    wrong: real machines have N cartridges of the same denomination
+    (cash-out throughput requires multiple bays for one denom), and the
+    operator needs to swap cartridge denominations during refill ($20
+    bay becomes $50 bay) without a re-provisioning event.
+
+    Coordinated v1.1 fix with the ATM side per the 2026-05-30T18:30Z +
+    18:45Z log entries:
+      - Wire shape flips from {denominations: {<d>: {position, count}}}
+        to {positions: {<p>: {denomination, count}}}
+      - Position becomes the fixed row identity (hardware bay number);
+        denomination + count are operator-editable per row
+      - NO unique constraint on denomination (multiple same-denom cassettes
+        are operationally valid)
+
+    Also adds `state_denomination` nullable column reserved for v2
+    reverse-channel reconciliation (operator-believed denomination per
+    slot vs ATM-reported denomination — diff highlighting in v2 UI).
+
+    SQLite doesn't support ALTER PRIMARY KEY directly; the migration
+    does the standard create-copy-drop-rename dance. Idempotent via the
+    column-probe trick used elsewhere in this file.
+    """
+    try:
+        # Probe: does the old PK shape still exist? If state_denomination
+        # column already exists, m008 already ran — no-op.
+        await db.fetchone(
+            "SELECT state_denomination FROM satoshimachine.cassette_configs "
+            "LIMIT 1"
+        )
+        return
+    except Exception:
+        pass
+
+    await db.execute(f"""
+        CREATE TABLE IF NOT EXISTS satoshimachine.cassette_configs_new (
+            machine_id          TEXT NOT NULL,
+            position            INTEGER NOT NULL,
+            denomination        INTEGER NOT NULL,
+            count               INTEGER NOT NULL,
+            updated_at          TIMESTAMP NOT NULL DEFAULT {db.timestamp_now},
+            updated_by          TEXT,
+            state_denomination  INTEGER,
+            state_count         INTEGER,
+            state_at            TIMESTAMP,
+            state_event_id      TEXT,
+            PRIMARY KEY (machine_id, position)
+        );
+        """)
+
+    # Backfill from the old table — column-by-column copy. In the v1
+    # m007 schema the row's `denomination` was simultaneously the
+    # operator-believed denomination AND the ATM-reported denomination
+    # (because the only write path was the bootstrap consumer copying
+    # from the ATM's state.db). So state_denomination at migration time
+    # = current denomination as a best-guess baseline; the next bootstrap
+    # event re-populates the state_* columns authoritatively.
+    await db.execute("""
+        INSERT INTO satoshimachine.cassette_configs_new
+            (machine_id, position, denomination, count,
+             updated_at, updated_by,
+             state_denomination, state_count, state_at, state_event_id)
+        SELECT machine_id, position, denomination, count,
+               updated_at, updated_by,
+               denomination, state_count, state_at, state_event_id
+        FROM satoshimachine.cassette_configs
+        """)
+
+    await db.execute("DROP TABLE satoshimachine.cassette_configs")
+    await db.execute(
+        "ALTER TABLE satoshimachine.cassette_configs_new "
+        "RENAME TO cassette_configs"
+    )