Fail held HTLCs on LSPS2 abandon

diff --git a/lightning-liquidity/src/lsps2/service.rs b/lightning-liquidity/src/lsps2/service.rs
index b4ae2db..5987756 100644
--- a/lightning-liquidity/src/lsps2/service.rs
+++ b/lightning-liquidity/src/lsps2/service.rs
@@ -1316,6 +1316,8 @@ where
 	/// This removes the intercept SCID, any outbound channel state, and associated
 	/// channel‐ID mappings for the specified `user_channel_id`, but only while no payment
 	/// has been forwarded yet and no channel has been opened on-chain.
+	/// Any held HTLCs for the pending flow are failed backwards before the local state
+	/// is removed.
 	///
 	/// Returns an error if:
 	///  - there is no channel matching `user_channel_id`, or
@@ -1351,25 +1353,27 @@ where
 
 			let jit_channel = peer_state
 				.outbound_channels_by_intercept_scid
-				.get(&intercept_scid)
+				.get_mut(&intercept_scid)
 				.ok_or_else(|| APIError::APIMisuseError {
-				err: format!(
-					"Failed to map intercept_scid {} for user_channel_id {} to a channel.",
-					intercept_scid, user_channel_id,
-				),
-			})?;
+					err: format!(
+						"Failed to map intercept_scid {} for user_channel_id {} to a channel.",
+						intercept_scid, user_channel_id,
+					),
+				})?;
 
-			let is_pending = matches!(
-				jit_channel.state,
-				OutboundJITChannelState::PendingInitialPayment { .. }
-					| OutboundJITChannelState::PendingChannelOpen { .. }
-			);
+			let intercepted_htlcs = match &mut jit_channel.state {
+				OutboundJITChannelState::PendingInitialPayment { payment_queue }
+				| OutboundJITChannelState::PendingChannelOpen { payment_queue, .. } => payment_queue.clear(),
+				_ => {
+					return Err(APIError::APIMisuseError {
+						err: "Cannot abandon channel open after channel creation or payment forwarding"
+							.to_string(),
+					});
+				},
+			};
 
-			if !is_pending {
-				return Err(APIError::APIMisuseError {
-					err: "Cannot abandon channel open after channel creation or payment forwarding"
-						.to_string(),
-				});
+			for htlc in intercepted_htlcs {
+				let _ = self.channel_manager.get_cm().fail_intercepted_htlc(htlc.intercept_id);
 			}
 
 			peer_state.intercept_scid_by_user_channel_id.remove(&user_channel_id);
diff --git a/lightning-liquidity/tests/lsps2_integration_tests.rs b/lightning-liquidity/tests/lsps2_integration_tests.rs
index 6ebf176..241fabe 100644
--- a/lightning-liquidity/tests/lsps2_integration_tests.rs
+++ b/lightning-liquidity/tests/lsps2_integration_tests.rs
@@ -682,6 +682,125 @@ fn channel_open_abandoned() {
 	assert!(result.is_err());
 }
 
+#[test]
+fn channel_open_abandoned_releases_intercepted_htlcs() {
+	let chanmon_cfgs = create_chanmon_cfgs(3);
+	let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
+	let mut service_node_config = test_default_channel_config();
+	service_node_config.htlc_interception_flags = HTLCInterceptionFlags::ToInterceptSCIDs as u8;
+
+	let mut client_node_config = test_default_channel_config();
+	client_node_config.channel_config.accept_underpaying_htlcs = true;
+
+	let node_chanmgrs = create_node_chanmgrs(
+		3,
+		&node_cfgs,
+		&[Some(service_node_config), Some(client_node_config), None],
+	);
+	let nodes = create_network(3, &node_cfgs, &node_chanmgrs);
+	let (lsps_nodes, promise_secret) = setup_test_lsps2_nodes_with_payer(nodes);
+	let LSPSNodesWithPayer { ref service_node, ref client_node, ref payer_node } = lsps_nodes;
+
+	let payer_node_id = payer_node.node.get_our_node_id();
+	let service_node_id = service_node.inner.node.get_our_node_id();
+	let client_node_id = client_node.inner.node.get_our_node_id();
+
+	let service_handler = service_node.liquidity_manager.lsps2_service_handler().unwrap();
+	create_chan_between_nodes_with_value(&payer_node, &service_node.inner, 2_000_000, 100_000);
+
+	let intercept_scid = service_node.node.get_intercept_scid();
+	let user_channel_id = 42u128;
+	let cltv_expiry_delta: u32 = 144;
+	let payment_size_msat = Some(1_000_000);
+	let fee_base_msat: u64 = 1_000;
+
+	execute_lsps2_dance(
+		&lsps_nodes,
+		intercept_scid,
+		user_channel_id,
+		cltv_expiry_delta,
+		promise_secret,
+		payment_size_msat,
+		fee_base_msat,
+	);
+
+	let invoice = create_jit_invoice(
+		&client_node,
+		service_node_id,
+		intercept_scid,
+		cltv_expiry_delta,
+		payment_size_msat,
+		"channel-open-abandoned-cleanup",
+		3600,
+	)
+	.unwrap();
+
+	payer_node
+		.node
+		.pay_for_bolt11_invoice(
+			&invoice,
+			PaymentId(invoice.payment_hash().0),
+			None,
+			OptionalBolt11PaymentParams::default(),
+		)
+		.unwrap();
+
+	check_added_monitors(&payer_node, 1);
+	let events = payer_node.node.get_and_clear_pending_msg_events();
+	let ev = SendEvent::from_event(events[0].clone());
+	service_node.inner.node.handle_update_add_htlc(payer_node_id, &ev.msgs[0]);
+	do_commitment_signed_dance(&service_node.inner, &payer_node, &ev.commitment_msg, false, true);
+	service_node.inner.node.process_pending_htlc_forwards();
+
+	let events = service_node.inner.node.get_and_clear_pending_events();
+	assert_eq!(events.len(), 1);
+	let intercept_id = match &events[0] {
+		Event::HTLCIntercepted {
+			intercept_id,
+			requested_next_hop_scid,
+			payment_hash,
+			expected_outbound_amount_msat,
+			..
+		} => {
+			assert_eq!(*requested_next_hop_scid, intercept_scid);
+			service_handler
+				.htlc_intercepted(
+					*requested_next_hop_scid,
+					*intercept_id,
+					*expected_outbound_amount_msat,
+					*payment_hash,
+				)
+				.unwrap();
+			*intercept_id
+		},
+		other => panic!("Expected HTLCIntercepted, got {:?}", other),
+	};
+
+	match service_node.liquidity_manager.next_event().unwrap() {
+		LiquidityEvent::LSPS2Service(LSPS2ServiceEvent::OpenChannel { .. }) => {},
+		other => panic!("Unexpected event: {:?}", other),
+	};
+
+	service_handler.channel_open_abandoned(&client_node_id, user_channel_id).unwrap();
+
+	let res = service_node.inner.node.fail_intercepted_htlc(intercept_id);
+	assert!(
+		res.is_err(),
+		"channel_open_abandoned must release the intercepted HTLC via fail_intercepted_htlc, but the entry is still pending: {:?}",
+		res,
+	);
+
+	let events = service_node.inner.node.get_and_clear_pending_events();
+	assert_eq!(events.len(), 1);
+	match &events[0] {
+		Event::HTLCHandlingFailed {
+			failure_type: HTLCHandlingFailureType::InvalidForward { requested_forward_scid },
+			..
+		} => assert_eq!(*requested_forward_scid, intercept_scid),
+		other => panic!("Expected HTLCHandlingFailed, got {:?}", other),
+	}
+}
+
 #[test]
 fn channel_open_abandoned_nonexistent_channel() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);