diff --git a/src/paths.rs b/src/paths.rs
index d6a2dfa..bb27d5a 100644
--- a/src/paths.rs
+++ b/src/paths.rs
@@ -15,8 +15,16 @@ pub fn workspace_dir() -> PathBuf {
     }
 }
 
+/// Runtime state dir. When `DAMOCLES_WORKSPACE` is set (hyperhive flat
+/// layout) the state files live directly in the workspace — no `state/`
+/// subdirectory. In the legacy `/workspace` layout they live in
+/// `<workspace>/state/`.
 pub fn state_dir() -> PathBuf {
-    workspace_dir().join("state")
+    if std::env::var("DAMOCLES_WORKSPACE").is_ok() {
+        workspace_dir()
+    } else {
+        workspace_dir().join("state")
+    }
 }
 
 pub fn identity_dir() -> PathBuf {