diff --git a/backend/src/dispute/dispute-saga.service.spec.ts b/backend/src/dispute/dispute-saga.service.spec.ts
index babfa15..359ff5d 100644
--- a/backend/src/dispute/dispute-saga.service.spec.ts
+++ b/backend/src/dispute/dispute-saga.service.spec.ts
@@ -35,6 +35,15 @@ function buildMocks() {
       escrow.status = 'released';
       return escrow;
     }),
+    cancel: jest.fn().mockImplementation(async () => {
+      escrow.status = 'cancelled';
+      return escrow;
+    }),
+    split: jest.fn().mockImplementation(async (_id: string, splitPercentage: number) => {
+      escrow.status = 'released';
+      (escrow as any).splitPercentage = splitPercentage;
+      return escrow;
+    }),
   };
 
   const webhookService = { dispatch: jest.fn().mockResolvedValue(undefined) };
@@ -119,6 +128,30 @@ describe('DisputeSagaService', () => {
       expect(escrowService.raiseDispute).toHaveBeenCalledWith('esc-001', ESCALATE_DTO.reason);
     });
 
+    it('allows re-escalation if the previous saga is COMPLETED', async () => {
+      const firstSaga = await service.escalate('esc-001', ESCALATE_DTO);
+      // Simulate completion
+      firstSaga.currentStep = DisputeStep.COMPLETED;
+      
+      const secondSaga = await service.escalate('esc-001', ESCALATE_DTO);
+      expect(secondSaga.sagaId).not.toBe(firstSaga.sagaId);
+      expect(secondSaga.escrowId).toBe('esc-001');
+      
+      // Verify old saga is still tracked
+      const retrievedFirst = service.findById(firstSaga.sagaId);
+      expect(retrievedFirst.currentStep).toBe(DisputeStep.COMPLETED);
+    });
+
+    it('allows re-escalation if the previous saga is FAILED', async () => {
+      const firstSaga = await service.escalate('esc-001', ESCALATE_DTO);
+      // Simulate failure
+      firstSaga.currentStep = DisputeStep.FAILED;
+      
+      const secondSaga = await service.escalate('esc-001', ESCALATE_DTO);
+      expect(secondSaga.sagaId).not.toBe(firstSaga.sagaId);
+      expect(secondSaga.escrowId).toBe('esc-001');
+    });
+
     it('records ESCALATION in stepHistory as completed', async () => {
       const saga = await service.escalate('esc-001', ESCALATE_DTO);
       const record = saga.stepHistory.find(r => r.step === DisputeStep.ESCALATION);
@@ -305,12 +338,13 @@ describe('DisputeSagaService', () => {
       await service.castVote(sagaId, { jurorAddress: JURORS[2], vote: 'depositor' });
     }
 
-    it('completes saga and sets COMPLETED for DEPOSITOR_WINS', async () => {
+    it('completes saga and calls escrowService.cancel for DEPOSITOR_WINS', async () => {
       await runToPayoutStep('depositor');
       const saga = await service.executePayout(sagaId, {});
       expect(saga.currentStep).toBe(DisputeStep.COMPLETED);
       expect(saga.payoutTxHash).toBeDefined();
       expect(saga.completedAt).toBeDefined();
+      expect(escrowService.cancel).toHaveBeenCalledWith('esc-001');
     });
 
     it('releases escrow for BENEFICIARY_WINS', async () => {
@@ -319,6 +353,12 @@ describe('DisputeSagaService', () => {
       expect(escrowService.release).toHaveBeenCalledWith('esc-001');
     });
 
+    it('calls escrowService.split with correct percentage for SPLIT', async () => {
+      await runToPayoutStep('split');
+      await service.executePayout(sagaId, { splitPercentage: 70 });
+      expect(escrowService.split).toHaveBeenCalledWith('esc-001', 70);
+    });
+
     it('dispatches payout_executed and saga_completed webhooks', async () => {
       await runToPayoutStep('depositor');
       await service.executePayout(sagaId, {});
diff --git a/backend/src/dispute/dispute-saga.service.ts b/backend/src/dispute/dispute-saga.service.ts
index 94da0c4..543d5d7 100644
--- a/backend/src/dispute/dispute-saga.service.ts
+++ b/backend/src/dispute/dispute-saga.service.ts
@@ -84,7 +84,11 @@ export class DisputeSagaService {
   async escalate(escrowId: string, dto: EscalateDisputeDto): Promise<DisputeSaga> {
     // Guard: only one active saga per escrow
     const existing = this.findByEscrowId(escrowId);
-    if (existing && existing.currentStep !== DisputeStep.FAILED) {
+    if (
+      existing &&
+      existing.currentStep !== DisputeStep.FAILED &&
+      existing.currentStep !== DisputeStep.COMPLETED
+    ) {
       throw new ConflictException(`An active dispute saga already exists for escrow ${escrowId}`);
     }
 
@@ -426,24 +430,11 @@ export class DisputeSagaService {
         break;
 
       case DisputeVerdict.DEPOSITOR_WINS:
-        // Funds returned to depositor — mark as cancelled
-        {
-          const escrow = await this.escrowService.findById(saga.escrowId);
-          if (escrow) escrow.status = 'cancelled';
-        }
+        await this.escrowService.cancel(saga.escrowId);
         break;
 
       case DisputeVerdict.SPLIT:
-        // Partial release — use provided split or default 50/50
-        {
-          const escrow = await this.escrowService.findById(saga.escrowId);
-          if (escrow) {
-            // Record split metadata; actual on-chain split would be handled by Soroban contract
-            (escrow as Escrow & { splitPercentage?: number }).splitPercentage =
-              splitPercentage ?? 50;
-            escrow.status = 'released';
-          }
-        }
+        await this.escrowService.split(saga.escrowId, splitPercentage ?? 50);
         break;
     }
   }
diff --git a/backend/src/escrow/escrow.service.spec.ts b/backend/src/escrow/escrow.service.spec.ts
index ca771e2..f43e16e 100644
--- a/backend/src/escrow/escrow.service.spec.ts
+++ b/backend/src/escrow/escrow.service.spec.ts
@@ -7,6 +7,25 @@ describe('EscrowService', () => {
     service = new EscrowService();
   });
 
+  describe('create', () => {
+    it('generates unique IDs even when called concurrently in a tight loop', async () => {
+      const numEscrows = 1000;
+      const promises = [];
+      for (let i = 0; i < numEscrows; i++) {
+        promises.push(service.create(`GDEP${i}`, `GBEN${i}`, '100'));
+      }
+      
+      const escrows = await Promise.all(promises);
+      const ids = new Set(escrows.map(e => e.id));
+      
+      expect(ids.size).toBe(numEscrows);
+      
+      // Verify UUID format (basic check)
+      const sampleId = escrows[0].id;
+      expect(sampleId).toMatch(/^[0-9a-f]{8}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{12}$/i);
+    });
+  });
+
   describe('findAll', () => {
     it('returns every tracked escrow', async () => {
       await service.create('GDEP1', 'GBEN1', '100');
@@ -22,6 +41,52 @@ describe('EscrowService', () => {
     });
   });
 
+  describe('fund', () => {
+    it('updates status to active for a pending escrow', async () => {
+      const escrow = await service.create('GDEP', 'GBEN', '100');
+      const updated = await service.fund(escrow.id);
+      expect(updated.status).toBe('active');
+    });
+
+    it('throws when trying to fund an already active escrow', async () => {
+      const escrow = await service.create('GDEP', 'GBEN', '100');
+      await service.fund(escrow.id);
+      await expect(service.fund(escrow.id)).rejects.toThrow('Cannot fund escrow in status: active');
+    });
+
+    it('throws when trying to fund a disputed escrow', async () => {
+      const escrow = await service.create('GDEP', 'GBEN', '100');
+      await service.fund(escrow.id); // Must be active to dispute? No, pending can be disputed based on current logic. Wait, let's just make it disputed using applyChainState.
+      await service.applyChainState(escrow.id, { status: 'disputed' });
+      await expect(service.fund(escrow.id)).rejects.toThrow('Cannot fund escrow in status: disputed');
+    });
+  });
+
+  describe('cancel', () => {
+    it('updates status to cancelled', async () => {
+      const escrow = await service.create('GDEP', 'GBEN', '100');
+      const updated = await service.cancel(escrow.id);
+      expect(updated.status).toBe('cancelled');
+    });
+
+    it('throws when escrow does not exist', async () => {
+      await expect(service.cancel('esc-missing')).rejects.toThrow('Escrow not found');
+    });
+  });
+
+  describe('split', () => {
+    it('updates status to released and sets split percentage', async () => {
+      const escrow = await service.create('GDEP', 'GBEN', '100');
+      const updated = await service.split(escrow.id, 70);
+      expect(updated.status).toBe('released');
+      expect(updated.splitPercentage).toBe(70);
+    });
+
+    it('throws when escrow does not exist', async () => {
+      await expect(service.split('esc-missing', 50)).rejects.toThrow('Escrow not found');
+    });
+  });
+
   describe('linkContractEscrowId / findByContractEscrowId', () => {
     it('links a DB row to its on-chain id and finds it back by that id', async () => {
       const escrow = await service.create('GDEP', 'GBEN', '100');
diff --git a/backend/src/escrow/escrow.service.ts b/backend/src/escrow/escrow.service.ts
index 83aa084..8bc8a97 100644
--- a/backend/src/escrow/escrow.service.ts
+++ b/backend/src/escrow/escrow.service.ts
@@ -14,6 +14,7 @@ export interface Escrow {
   disputedAt?: string;
   /** On-chain escrow identifier, set once this row is linked to its contract counterpart. */
   contractEscrowId?: string;
+  splitPercentage?: number;
 }
 
 /** Chain-verified fields the reconciler may write when repairing drift. */
@@ -36,7 +37,7 @@ export class EscrowService {
   private escrows: Map<string, Escrow> = new Map();
 
   async create(depositor: string, beneficiary: string, amountXLM: string): Promise<Escrow> {
-    const id = `esc-${Date.now()}-${randomUUID().slice(0, 8)}`;
+    const id = randomUUID();
     const escrow: Escrow = {
       id,
       depositor,
@@ -89,7 +90,7 @@ export class EscrowService {
 
   /** Creates a DB row for an escrow found on-chain but never recorded (e.g. a missed creation event). */
   async createFromChainState(seed: ChainEscrowSeed): Promise<Escrow> {
-    const id = `esc-${Date.now()}-${randomUUID().slice(0, 8)}`;
+    const id = randomUUID();
     const escrow: Escrow = {
       id,
       depositor: seed.depositor,
@@ -103,6 +104,16 @@ export class EscrowService {
     return escrow;
   }
 
+  async fund(id: string): Promise<Escrow> {
+    const escrow = this.escrows.get(id);
+    if (!escrow) throw new Error('Escrow not found');
+    if (escrow.status !== 'pending') {
+      throw new Error(`Cannot fund escrow in status: ${escrow.status}`);
+    }
+    escrow.status = 'active';
+    return escrow;
+  }
+
   async release(id: string): Promise<Escrow> {
     const escrow = this.escrows.get(id);
     if (!escrow) throw new Error('Escrow not found');
@@ -110,6 +121,21 @@ export class EscrowService {
     return escrow;
   }
 
+  async cancel(id: string): Promise<Escrow> {
+    const escrow = this.escrows.get(id);
+    if (!escrow) throw new Error('Escrow not found');
+    escrow.status = 'cancelled';
+    return escrow;
+  }
+
+  async split(id: string, splitPercentage: number): Promise<Escrow> {
+    const escrow = this.escrows.get(id);
+    if (!escrow) throw new Error('Escrow not found');
+    escrow.status = 'released';
+    escrow.splitPercentage = splitPercentage;
+    return escrow;
+  }
+
   async raiseDispute(id: string, reason?: string): Promise<Escrow> {
     const escrow = this.escrows.get(id);
     if (!escrow) throw new Error('Escrow not found');
diff --git a/backend/src/event-ingestion/event-processor.service.spec.ts b/backend/src/event-ingestion/event-processor.service.spec.ts
index 5471972..a73394a 100644
--- a/backend/src/event-ingestion/event-processor.service.spec.ts
+++ b/backend/src/event-ingestion/event-processor.service.spec.ts
@@ -10,6 +10,7 @@ describe('EventProcessorService', () => {
     findById: jest.fn().mockResolvedValue({ id: 'esc-123', status: 'pending' }),
     release: jest.fn().mockResolvedValue({ id: 'esc-123', status: 'released' }),
     raiseDispute: jest.fn().mockResolvedValue({ id: 'esc-123', status: 'disputed' }),
+    fund: jest.fn().mockResolvedValue({ id: 'esc-123', status: 'active' }),
   };
 
   beforeEach(async () => {
@@ -67,6 +68,24 @@ describe('EventProcessorService', () => {
       expect(mockEscrowService.release).toHaveBeenCalledWith('esc-123');
     });
 
+    it('should process escrow_funded event', async () => {
+      const event: SorobanEvent = {
+        id: 'event-funded',
+        ledger: 101,
+        contractId: 'test-contract',
+        eventType: 'escrow_funded',
+        topic: ['escrow_funded', 'esc-123'],
+        value: {},
+        xdr: 'test-xdr',
+        createdAt: new Date(),
+      };
+
+      const result = await service.processEvent(event);
+
+      expect(result.success).toBe(true);
+      expect(mockEscrowService.fund).toHaveBeenCalledWith('esc-123');
+    });
+
     it('should process escrow_disputed event', async () => {
       const event: SorobanEvent = {
         id: 'event-3',
diff --git a/backend/src/event-ingestion/event-processor.service.ts b/backend/src/event-ingestion/event-processor.service.ts
index 53dd29b..3956d53 100644
--- a/backend/src/event-ingestion/event-processor.service.ts
+++ b/backend/src/event-ingestion/event-processor.service.ts
@@ -94,11 +94,8 @@ export class EventProcessorService {
 
   private async handleEscrowFunded(event: SorobanEvent): Promise<void> {
     const escrowId = event.topic[1];
-    const escrow = await this.escrowService.findById(escrowId);
-    if (escrow) {
-      escrow.status = 'active';
-      this.logger.log(`Escrow funded: ${escrowId}`);
-    }
+    await this.escrowService.fund(escrowId);
+    this.logger.log(`Escrow funded: ${escrowId}`);
   }
 
   private async handleEscrowReleased(event: SorobanEvent): Promise<void> {