diff --git a/__tests__/bundle/holdCancelArms.test.ts b/__tests__/bundle/holdCancelArms.test.ts
new file mode 100644
index 00000000..e52b30ac
--- /dev/null
+++ b/__tests__/bundle/holdCancelArms.test.ts
@@ -0,0 +1,76 @@
+import type { FakeGithub } from './fakeGithub'
+import { afterAll, afterEach, beforeAll, describe, expect, it, vi } from 'vitest'
+
+import { start } from './fakeGithub'
+import { comment, configReads, helpersFor, repo, token } from './helpers'
+import { runBundle } from './runBundle'
+
+vi.setConfig({ testTimeout: 30_000 })
+
+// the arms of cancelHold in src/labels/hold.ts that bundle.test.ts's /unhold case (both labels present, every
+// write accepted) does not reach: nothing to remove, a failed labels read, a failed removal, and a label that
+// was already gone when the DELETE arrived
+describe('dist/index.js /hold cancel arms', () => {
+  let gh: FakeGithub
+  const { expectRequests } = helpersFor(() => gh)
+
+  beforeAll(async () => {
+    gh = await start()
+  })
+  afterEach(() => gh.reset())
+  afterAll(() => gh.close())
+
+  function run(body: string) {
+    return runBundle({ eventName: 'issue_comment', payload: comment(body), inputs: { ...token, 'prow-commands': '/hold' }, apiUrl: gh.url })
+  }
+
+  it('/hold cancel on an issue without a hold label succeeds and deletes nothing', async () => {
+    gh.route('GET', `${repo}/issues/1`, { status: 200, body: { labels: [{ name: 'lgtm' }] } })
+
+    const result = await run('/hold cancel')
+
+    expect(result.status, result.stdout).toBe(0)
+    expect(result.errors).toEqual([])
+    expect(gh.requestsMatching('DELETE', /./)).toEqual([])
+    expectRequests(configReads(), [`GET ${repo}/issues/1`])
+  })
+
+  it('/hold cancel fails naming the labels read when GET /issues/1 answers 500, and deletes nothing', async () => {
+    gh.route('GET', `${repo}/issues/1`, { status: 500, body: { message: 'boom' } })
+
+    const result = await run('/hold cancel')
+
+    expect(result.status, result.stdout).toBe(1)
+    expect(result.errors.some(e => e.includes('could not get labels from issue'))).toBe(true)
+    expect(gh.requestsMatching('DELETE', /./)).toEqual([])
+    expectRequests(configReads(), [`GET ${repo}/issues/1`])
+  })
+
+  it('/hold cancel fails naming the hold label when the DELETE answers 500', async () => {
+    gh.route('GET', `${repo}/issues/1`, { status: 200, body: { labels: [{ name: 'do-not-merge/hold' }] } })
+    gh.route('DELETE', `${repo}/issues/1/labels/do-not-merge%2Fhold`, { status: 500, body: { message: 'boom' } })
+
+    const result = await run('/hold cancel')
+
+    expect(result.status, result.stdout).toBe(1)
+    expect(result.errors.some(e => e.includes('could not remove the hold label'))).toBe(true)
+    expect(result.errors.some(e => e.includes('could not remove label do-not-merge/hold'))).toBe(true)
+    expectRequests(configReads(), [`GET ${repo}/issues/1`, `DELETE ${repo}/issues/1/labels/do-not-merge%2Fhold`])
+  })
+
+  it('/hold cancel treats a label that is already gone (DELETE 404) as removed', async () => {
+    gh.route('GET', `${repo}/issues/1`, { status: 200, body: { labels: [{ name: 'hold' }, { name: 'do-not-merge/hold' }] } })
+    gh.route('DELETE', `${repo}/issues/1/labels/hold`, { status: 404, body: { message: 'Label does not exist' } })
+    gh.route('DELETE', `${repo}/issues/1/labels/do-not-merge%2Fhold`, { status: 200, body: [] })
+
+    const result = await run('/hold cancel')
+
+    expect(result.status, result.stdout).toBe(0)
+    expect(result.errors).toEqual([])
+    expectRequests(configReads(), [
+      `GET ${repo}/issues/1`,
+      `DELETE ${repo}/issues/1/labels/hold`,
+      `DELETE ${repo}/issues/1/labels/do-not-merge%2Fhold`,
+    ])
+  })
+})