diff --git a/packages/data-designer-engine/src/data_designer/engine/models/request_admission/controller.py b/packages/data-designer-engine/src/data_designer/engine/models/request_admission/controller.py
index 56071ed9b..8494d7d69 100644
--- a/packages/data-designer-engine/src/data_designer/engine/models/request_admission/controller.py
+++ b/packages/data-designer-engine/src/data_designer/engine/models/request_admission/controller.py
@@ -388,9 +388,15 @@ def release(self, lease: RequestAdmissionLease, outcome: RequestReleaseOutcome)
                 self._sequence += 1
                 result = ReleaseResult(released=True, reason="released")
                 if outcome.kind == "rate_limited":
-                    events.append(self._request_event_locked("request_rate_limited", item=lease.item, lease=lease))
+                    events.append(self._request_event_locked("request_rate_limited", item=active.item, lease=active))
                 events.append(
-                    self._request_event_locked("request_lease_released", item=lease.item, lease=lease, result=result)
+                    self._request_event_locked(
+                        "request_lease_released",
+                        item=active.item,
+                        lease=active,
+                        result=result,
+                        outcome=outcome,
+                    )
                 )
                 self._admit_waiters_locked(events)
             self._condition.notify_all()
@@ -579,10 +585,8 @@ def _apply_outcome(
                 state.current_limit = max(
                     1, math.floor(state.current_limit * self._config.multiplicative_decrease_factor)
                 )
-                observed_limit = max(1, admitted_adaptive_limit)
-                state.rate_limit_ceiling = (
-                    observed_limit if state.rate_limit_ceiling == 0 else min(state.rate_limit_ceiling, observed_limit)
-                )
+                if state.rate_limit_ceiling == 0:
+                    state.rate_limit_ceiling = max(1, admitted_adaptive_limit)
                 if state.current_limit != prev_limit:
                     events.append(
                         self._request_event_locked(
@@ -696,6 +700,7 @@ def _request_event_locked(
         lease: RequestAdmissionLease | None = None,
         decision: RequestAdmissionDenied | None = None,
         result: ReleaseResult | None = None,
+        outcome: RequestReleaseOutcome | None = None,
         request_resource_key: RequestResourceKey | None = None,
         diagnostics: Mapping[str, object] | None = None,
     ) -> RequestAdmissionEvent:
@@ -706,6 +711,8 @@ def _request_event_locked(
         reason_or_outcome = None
         if decision is not None:
             reason_or_outcome = decision.reason
+        elif outcome is not None:
+            reason_or_outcome = outcome.kind
         elif result is not None:
             reason_or_outcome = result.reason
         return RequestAdmissionEvent.capture(
diff --git a/packages/data-designer-engine/tests/engine/models/request_admission/test_controller.py b/packages/data-designer-engine/tests/engine/models/request_admission/test_controller.py
index 7de678c3e..c0c9a5801 100644
--- a/packages/data-designer-engine/tests/engine/models/request_admission/test_controller.py
+++ b/packages/data-designer-engine/tests/engine/models/request_admission/test_controller.py
@@ -7,7 +7,6 @@
 import logging
 import threading
 import time
-from dataclasses import replace
 
 import pytest
 
@@ -26,6 +25,7 @@
     RequestGroupSpec,
     RequestResourceKey,
 )
+from data_designer.engine.observability import InMemoryAdmissionEventSink
 
 
 def _item(domain: RequestDomain = RequestDomain.CHAT, timeout: float | None = None) -> RequestAdmissionItem:
@@ -94,7 +94,14 @@ def test_request_admission_stale_release_requires_exact_lease() -> None:
     item = _item()
     lease = controller.try_acquire(item)
     assert isinstance(lease, RequestAdmissionLease)
-    stale = replace(lease, current_adaptive_limit=lease.current_adaptive_limit + 1)
+    stale = RequestAdmissionLease(
+        lease_id=lease.lease_id,
+        item=lease.item,
+        acquired_at=lease.acquired_at,
+        current_adaptive_limit=lease.current_adaptive_limit + 1,
+        effective_max=lease.effective_max,
+        controller_generation=lease.controller_generation,
+    )
 
     stale_result = controller.release(stale, RequestReleaseOutcome(kind="provider_failure"))
     snapshot = controller.pressure.snapshot(item.resource)
@@ -184,7 +191,7 @@ def test_request_admission_fresh_rate_limit_after_burst_decreases_again() -> Non
 
     assert snapshot is not None
     assert snapshot.current_limit == 2
-    assert snapshot.rate_limit_ceiling == 4
+    assert snapshot.rate_limit_ceiling == 8
     assert snapshot.consecutive_rate_limits == 9
 
 
@@ -255,6 +262,21 @@ def test_request_admission_logs_sink_failures(caplog: pytest.LogCaptureFixture)
     assert "Request admission event sink raised; dropping event." in caplog.text
 
 
+def test_request_lease_released_event_records_release_outcome() -> None:
+    sink = InMemoryAdmissionEventSink()
+    controller = AdaptiveRequestAdmissionController(event_sink=sink)
+    controller.register(provider_name="nvidia", model_id="nemotron", alias="default", max_parallel_requests=1)
+    item = _item()
+    lease = controller.try_acquire(item)
+    assert isinstance(lease, RequestAdmissionLease)
+
+    controller.release(lease, RequestReleaseOutcome(kind="provider_failure"))
+
+    release_events = [event for event in sink.request_events if event.event_kind == "request_lease_released"]
+    assert release_events
+    assert release_events[-1].reason_or_outcome == "provider_failure"
+
+
 @pytest.mark.asyncio(loop_scope="session")
 async def test_acquire_sync_rejects_running_event_loop() -> None:
     controller = _controller(cap=1)