diff --git a/programs/mango-v4/src/error.rs b/programs/mango-v4/src/error.rs
index bf871b390..bfc5b8ae5 100644
--- a/programs/mango-v4/src/error.rs
+++ b/programs/mango-v4/src/error.rs
@@ -63,6 +63,8 @@ pub enum MangoError {
     BankNetBorrowsLimitReached,
     #[msg("token position does not exist")]
     TokenPositionDoesNotExist,
+    #[msg("token deposits into accounts that are being liquidated must bring their health above the init threshold")]
+    DepositsIntoLiquidatingMustRecover,
 }
 
 impl MangoError {
diff --git a/programs/mango-v4/src/instructions/token_deposit.rs b/programs/mango-v4/src/instructions/token_deposit.rs
index 9a8e9e54f..f31d028e8 100644
--- a/programs/mango-v4/src/instructions/token_deposit.rs
+++ b/programs/mango-v4/src/instructions/token_deposit.rs
@@ -156,7 +156,12 @@ impl<'a, 'info> DepositCommon<'a, 'info> {
             let health = compute_health(&account.borrow(), HealthType::Init, &retriever)
                 .context("post-deposit init health")?;
             msg!("health: {}", health);
-            account.fixed.maybe_recover_from_being_liquidated(health);
+            let was_being_liquidated = account.being_liquidated();
+            let recovered = account.fixed.maybe_recover_from_being_liquidated(health);
+            require!(
+                !was_being_liquidated || recovered,
+                MangoError::DepositsIntoLiquidatingMustRecover
+            );
         }
 
         //
diff --git a/programs/mango-v4/tests/test_liq_perps.rs b/programs/mango-v4/tests/test_liq_perps.rs
index 08dbe4d1e..e0bf8d858 100644
--- a/programs/mango-v4/tests/test_liq_perps.rs
+++ b/programs/mango-v4/tests/test_liq_perps.rs
@@ -601,8 +601,11 @@ async fn test_liq_perps_base_position_and_bankruptcy() -> Result<(), TransportEr
 
     //
     // SETUP: We want pnl settling to cause a negative quote position,
-    // thus we deposit some base token collateral
+    // thus we deposit some base token collateral. To be able to do that,
+    // we need to temporarily raise health > 0, deposit, then bring health
+    // negative again for the test
     //
+    set_bank_stub_oracle_price(solana, group, quote_token, admin, 2.0).await;
     send_tx(
         solana,
         TokenDepositInstruction {
@@ -616,6 +619,7 @@ async fn test_liq_perps_base_position_and_bankruptcy() -> Result<(), TransportEr
     )
     .await
     .unwrap();
+    set_bank_stub_oracle_price(solana, group, quote_token, admin, 1.0).await;
 
     //
     // TEST: Can settle-pnl even though health is negative