During an operational recovery from a rolling deploy incident (INC-I-062), 456 reward pool UTXOs that had already been consumed by prior epoch distributions were re-introduced into the UTXO set. At the next epoch boundary (epoch 362, height 130,320), the EpochReward transaction consumed all 816 pool UTXOs — 360 legitimate and 456 duplicates. A silent error handling defect (let _ = on spend errors) allowed the outputs to be created without valid inputs, producing 457 DOLI from nothing.

Three defensive checks failed simultaneously:

1. Spend errors were silently discarded (Result not checked)
2. Pool input verification was skipped during sync/reorg validation
3. No post-block conservation invariant existed

The 457 DOLI are permanent — they are consensus-agreed across all 15 nodes and mixed into normal producer reward UTXOs. Retroactive correction would require a chain reset or punitive burn mechanism, neither of which is justified for a 0.31% anomaly with no victim. The code defects have been fixed to prevent any future occurrence.