diff --git a/src/commands/squash.ts b/src/commands/squash.ts
index 443ced9..0236081 100644
--- a/src/commands/squash.ts
+++ b/src/commands/squash.ts
@@ -22,9 +22,11 @@ export async function action(branch: string) {
   const originalHead = await git.headRef(worktree)
 
   const spin = spinner("Squashing", branch)
+  let didReset = false
 
   try {
     await git.resetSoft(base, worktree)
+    didReset = true
 
     spin.text = "Starting container"
     await vm.ensure((msg) => { spin.text = msg })
@@ -35,7 +37,7 @@ export async function action(branch: string) {
     if (!diff.trim()) {
       await git.resetSoft(originalHead, worktree)
       spin.fail("No changes after squash")
-      return
+      process.exit(1)
     }
 
     const gen = await vm.claudePipe(
@@ -43,16 +45,23 @@ export async function action(branch: string) {
       "Write a commit message summarizing all changes. Subject line: imperative mood, max 72 characters, no period. Add a blank line then a concise body with the key changes as bullet points. Output only the raw commit message, no quotes or markdown.",
     )
 
+    if (gen.exitCode !== 0 || !gen.stdout.trim()) {
+      spin.text = "AI commit message failed, using fallback"
+    }
     const msg = (gen.exitCode === 0 && gen.stdout.trim()) || `squash ${branch}`
     await git.commit(msg, worktree)
 
     spin.succeed(`Squashed ${branch} into a single commit`)
   } catch (err) {
-    const restored = await git.resetSoft(originalHead, worktree).then(() => true).catch(() => false)
     const message = err instanceof Error ? err.message : String(err)
-    spin.fail(restored
-      ? `Squash failed, changes restored: ${message}`
-      : `Squash failed and rollback failed — check "git reflog" in the worktree: ${message}`)
+    if (!didReset) {
+      spin.fail(`Squash failed: ${message}`)
+    } else {
+      const restored = await git.resetSoft(originalHead, worktree).then(() => true).catch(() => false)
+      spin.fail(restored
+        ? `Squash failed, changes restored: ${message}`
+        : `Squash failed and rollback failed — check "git reflog" in the worktree: ${message}`)
+    }
     process.exit(1)
   }
 }