diff --git a/hive-jobq/src/scheduler.rs b/hive-jobq/src/scheduler.rs
index 462ff3d1..e61dd64d 100644
--- a/hive-jobq/src/scheduler.rs
+++ b/hive-jobq/src/scheduler.rs
@@ -233,15 +233,31 @@ impl<N, R: Clone + Eq + Hash> Scheduler<N, R> {
             .all(|n| n.parent != Some(id) || n.state.is_terminal())
     }
 
-    /// Whether any direct child of `id` ended `Failed`/`Cancelled` — the roll-up
-    /// failure condition for the parent.
-    /// `Skipped` children are **not** counted: being ruled out by an edge is the
-    /// expected fate of every branch not taken, so counting it would make any
-    /// group that branches on outcome roll up failed no matter how the run went.
-    fn any_child_failed(&self, id: NodeId) -> bool {
-        self.graph
-            .nodes()
-            .any(|n| n.parent == Some(id) && matches!(n.state, State::Failed | State::Cancelled))
+    /// What `id` rolls up to once all its children are terminal: `Failed` if any
+    /// child failed, else `Cancelled` if any was cancelled, else `Done`.
+    ///
+    /// `Failed` outranks `Cancelled` because the failure is the actionable fact —
+    /// a group where one step broke and the rest were dropped in response is a
+    /// failure, not a cancellation. A group whose children were *all* dropped
+    /// never failed at anything, and says so.
+    ///
+    /// `Skipped` children are ignored: being ruled out by an edge is the expected
+    /// fate of every branch not taken, so counting it would make any group that
+    /// branches on outcome roll up non-`Done` however the run went.
+    fn rolled_up_state(&self, id: NodeId) -> State {
+        let mut any_cancelled = false;
+        for child in self.graph.nodes().filter(|n| n.parent == Some(id)) {
+            match child.state {
+                State::Failed => return State::Failed,
+                State::Cancelled => any_cancelled = true,
+                _ => {}
+            }
+        }
+        if any_cancelled {
+            State::Cancelled
+        } else {
+            State::Done
+        }
     }
 
     /// Transition a node whose own logic just *succeeded* to its resulting state:
@@ -254,12 +270,10 @@ impl<N, R: Clone + Eq + Hash> Scheduler<N, R> {
     /// its dependency succeeds, and leaving it `Pending` would wedge the subtree
     /// non-terminal forever.
     fn settle_terminal(&mut self, id: NodeId) {
-        let state = if !self.all_children_terminal(id) {
-            State::Finishing
-        } else if self.any_child_failed(id) {
-            State::Failed
+        let state = if self.all_children_terminal(id) {
+            self.rolled_up_state(id)
         } else {
-            State::Done
+            State::Finishing
         };
         self.graph.set_state(id, state);
         if state.is_terminal() {
@@ -279,11 +293,7 @@ impl<N, R: Clone + Eq + Hash> Scheduler<N, R> {
             {
                 break;
             }
-            let state = if self.any_child_failed(a) {
-                State::Failed
-            } else {
-                State::Done
-            };
+            let state = self.rolled_up_state(a);
             self.graph.set_state(a, state);
             // Any terminal outcome can rule a dependent out — see `settle_terminal`.
             self.cascade_cancel(a);
@@ -982,13 +992,10 @@ mod tests {
         assert!(s.cancel_node(root));
         assert_eq!(s.graph().node(a).unwrap().state, State::Cancelled);
         assert_eq!(s.graph().node(b).unwrap().state, State::Cancelled);
-        // With every child terminal the root leaves `Finishing` and rolls up.
-        // It rolls up `Failed`, not `Cancelled`: the roll-up counts a cancelled
-        // child as a non-success, and it has no separate "the whole group was
-        // dropped" outcome. Pre-existing and unchanged here — a caller that
-        // wants to show a cancel as a cancel derives that from the node states,
-        // not from the root's.
-        assert_eq!(s.graph().node(root).unwrap().state, State::Failed);
+        // With every child terminal the root leaves `Finishing` and rolls up —
+        // as `Cancelled`, not `Failed`: nothing under it failed at anything, the
+        // work was dropped.
+        assert_eq!(s.graph().node(root).unwrap().state, State::Cancelled);
     }
 
     /// All-or-nothing: an in-flight node's work is not interruptible, and