diff --git a/LOTUS_BUGS.md b/LOTUS_BUGS.md
index 8b6b2d52a..41d943e86 100644
--- a/LOTUS_BUGS.md
+++ b/LOTUS_BUGS.md
@@ -49,13 +49,13 @@ This document tracks identified bugs, edge cases, and architectural discrepancie
 ### 4. DM and Group Message Calls
 
 - **File:** `cinny/src/app/components/CallEmbedProvider.tsx`
-- **Status:** **PARTIALLY FIXED ⚠️ UNTESTED** — Volume + ringtone selection added. Remaining: (b) non-intrusive notification when already in another call.
+- **Status:** **FIXED ⚠️ UNTESTED** — needs live-call verification: (a) ring/preview per selected ringtone & volume; (b) the corner banner appearing (with a single ping, not a loop) when a second call arrives while already in a call.
 - **Issue:** Incoming call ringtone is hardcoded, lacks volume control, and is suppressed if the user is already in an active call.
 - **Root Cause:** Ringing logic is tightly coupled to `RTCNotification` events in `CallEmbedProvider.tsx`, using a hardcoded audio file path. It lacks an abstraction for sound management or user-configurable settings for ringtones/volumes.
 - **Fix Applied:**
-  - `ringtoneVolume` setting (0–100, default 70); `IncomingCall` applies it to the ring. Slider in Settings → General → Calls.
+  - `ringtoneVolume` setting (0–100, default 70); applied to the ring. Slider in Settings → General → Calls.
   - **(a) Ringtone selection** (`4a875884`): `ringtoneId` setting (`classic | chime | soft | retro | none`). New `utils/ringtones.ts` synthesizes the three styles in-browser (WebAudio, mirroring `callSounds.ts`) — no new binary assets; `classic` keeps `call.ogg`; `none` is silent/visual-only. `startRingtone()` loops until stopped; `previewRingtone()` powers the on-select preview in Settings. Persisted id is whitelisted in `getSettings`.
-- **Remaining:** **(b)** When the user is already in a call (`joined`), a second incoming call is currently dropped from the UI entirely (`!joined && callInfo`). Fully un-suppressing would put a disruptive full-screen takeover over the active call — the correct fix is a compact, non-intrusive in-call notification (e.g. a toast with Answer/Reject) rather than the existing `Overlay` dialog. Deferred pending that design.
+  - **(b) Active-call notification** (`c67aed01`): when already joined to a _different_ call, a compact, non-intrusive `IncomingCallBanner` (caller avatar + name + Answer/Reject, top-right) replaces the full-screen `IncomingCall` overlay and plays a **single soft ping** (one-shot ringtone) instead of the looping ring — so it never takes over the screen or talks over the active call. Full overlay still shows when in no call; being in the ringing room's own call still shows nothing.
 
 ### 5. Seasonal Themes and Chat Backgrounds Design