From c5076e330c35d0cf8f470da9a80329539e5c1d52 Mon Sep 17 00:00:00 2001
From: Mike Johnston <mike@nervesocket.com>
Date: Fri, 20 Mar 2026 15:28:59 -0400
Subject: [PATCH] fix: update fund investment logic to decrement
 sharesOutstanding and withdraw cash from fund

---
 .../api/admin/users/[userId]/reset/route.ts   | 31 ++++++++++++++-----
 src/app/api/user/me/reset/route.ts            | 31 ++++++++++++++-----
 2 files changed, 48 insertions(+), 14 deletions(-)

diff --git a/src/app/api/admin/users/[userId]/reset/route.ts b/src/app/api/admin/users/[userId]/reset/route.ts
index 792cbc7..9a49b13 100644
--- a/src/app/api/admin/users/[userId]/reset/route.ts
+++ b/src/app/api/admin/users/[userId]/reset/route.ts
@@ -36,6 +36,7 @@ export async function POST(
           shares: true,
           fund: {
             select: {
+              userId: true,
               sharesOutstanding: true,
               user: {
                 select: {
@@ -92,15 +93,31 @@ export async function POST(
   }, 0)
   const totalValue = user.balance + portfolioValue + fundInvestmentValue
 
-  // Forfeit all fund investments — decrement each fund's sharesOutstanding
+  // Forfeit all fund investments — decrement sharesOutstanding and withdraw cash from fund
   const fundUpdates = user.fundInvestments
     .filter((inv) => inv.shares > 0)
-    .map((inv) =>
-      prisma.hedgeFund.update({
-        where: { id: inv.fundId },
-        data: { sharesOutstanding: { decrement: inv.shares } },
-      }),
-    )
+    .flatMap((inv) => {
+      const fundPortfolioValue = inv.fund.user.positions.reduce((psum, p) => {
+        const val =
+          p.positionType === 'LONG'
+            ? p.shares * p.hashtag.currentPrice
+            : (2 * p.avgBuyPrice - p.hashtag.currentPrice) * p.shares
+        return psum + val
+      }, 0)
+      const fundTotalValue = inv.fund.user.balance + fundPortfolioValue
+      const nav = calcFundNav(fundTotalValue, inv.fund.sharesOutstanding)
+      const payout = inv.shares * nav
+      return [
+        prisma.hedgeFund.update({
+          where: { id: inv.fundId },
+          data: { sharesOutstanding: { decrement: inv.shares } },
+        }),
+        prisma.user.update({
+          where: { id: inv.fund.userId },
+          data: { balance: { decrement: payout } },
+        }),
+      ]
+    })
 
   const tradeOps = keepHistory
     ? [
diff --git a/src/app/api/user/me/reset/route.ts b/src/app/api/user/me/reset/route.ts
index 9d6ad00..b77e9d2 100644
--- a/src/app/api/user/me/reset/route.ts
+++ b/src/app/api/user/me/reset/route.ts
@@ -38,6 +38,7 @@ export async function POST(req: NextRequest) {
           shares: true,
           fund: {
             select: {
+              userId: true,
               sharesOutstanding: true,
               user: {
                 select: {
@@ -94,15 +95,31 @@ export async function POST(req: NextRequest) {
   }, 0)
   const totalValue = user.balance + portfolioValue + fundInvestmentValue
 
-  // Forfeit all fund investments — decrement each fund's sharesOutstanding
+  // Forfeit all fund investments — decrement sharesOutstanding and withdraw cash from fund
   const fundUpdates = user.fundInvestments
     .filter((inv) => inv.shares > 0)
-    .map((inv) =>
-      prisma.hedgeFund.update({
-        where: { id: inv.fundId },
-        data: { sharesOutstanding: { decrement: inv.shares } },
-      }),
-    )
+    .flatMap((inv) => {
+      const fundPortfolioValue = inv.fund.user.positions.reduce((psum, p) => {
+        const val =
+          p.positionType === 'LONG'
+            ? p.shares * p.hashtag.currentPrice
+            : (2 * p.avgBuyPrice - p.hashtag.currentPrice) * p.shares
+        return psum + val
+      }, 0)
+      const fundTotalValue = inv.fund.user.balance + fundPortfolioValue
+      const nav = calcFundNav(fundTotalValue, inv.fund.sharesOutstanding)
+      const payout = inv.shares * nav
+      return [
+        prisma.hedgeFund.update({
+          where: { id: inv.fundId },
+          data: { sharesOutstanding: { decrement: inv.shares } },
+        }),
+        prisma.user.update({
+          where: { id: inv.fund.userId },
+          data: { balance: { decrement: payout } },
+        }),
+      ]
+    })
 
   const tradeOps = keepHistory
     ? [