diff --git a/NEWS b/NEWS
index b1c381b8bc29..6287953e5256 100644
--- a/NEWS
+++ b/NEWS
@@ -2,6 +2,13 @@ This documents significant changes in the 1.0 branch of ksh 93u+m.
 For full details, see the git log at: https://github.com/ksh93/ksh/tree/1.0
 Uppercase BUG_* IDs are shell bug IDs as used by the Modernish shell library.
 
+2022-08-05:
+
+- Reverted a buggy exec optimisation introduced on 2022-06-18. It is known
+  to make the build scripts of GNU binutils produce corrupted results.
+
+- Release 1.0.1.
+
 2022-08-01:
    _        _        ___ _____                          ___   ___   ___
   | | _____| |__    / _ \___ / _   _   _   _ __ ___    / / | / _ \ / _ \
diff --git a/src/cmd/ksh93/include/version.h b/src/cmd/ksh93/include/version.h
index 2afe0448ed65..ccf24a8e619d 100644
--- a/src/cmd/ksh93/include/version.h
+++ b/src/cmd/ksh93/include/version.h
@@ -17,8 +17,8 @@
 #include <releaseflags.h>
 
 #define SH_RELEASE_FORK	"93u+m"		/* only change if you develop a new ksh93 fork */
-#define SH_RELEASE_SVER	"1.0.0"		/* semantic version number: https://semver.org */
-#define SH_RELEASE_DATE	"2022-08-01"	/* must be in this format for $((.sh.version)) */
+#define SH_RELEASE_SVER	"1.0.1"		/* semantic version number: https://semver.org */
+#define SH_RELEASE_DATE	"2022-08-05"	/* must be in this format for $((.sh.version)) */
 #define SH_RELEASE_CPYR	"(c) 2020-2022 Contributors to ksh " SH_RELEASE_FORK
 
 /* Scripts sometimes field-split ${.sh.version}, so don't change amount of whitespace. */
diff --git a/src/cmd/ksh93/sh/xec.c b/src/cmd/ksh93/sh/xec.c
index a0f1cd068b91..5f240ce3449f 100644
--- a/src/cmd/ksh93/sh/xec.c
+++ b/src/cmd/ksh93/sh/xec.c
@@ -1927,11 +1927,7 @@ int sh_exec(register const Shnode_t *t, int flags)
 				t = t->lst.lstrit;
 			}
 			while(t->tre.tretyp == TLST);
-			/*
-			 * if sh_state(SH_FORKED) was turned on in the meantime, mix it in to the flags to allow a last-command
-			 * no_fork optimization via execflg2 -- this happens when a subshell forks mid-execution (sh_subfork())
-			 */
-			sh_exec(t,flags|sh_isstate(SH_FORKED));
+			sh_exec(t,flags);
 			break;
 		    }
 
diff --git a/src/cmd/ksh93/tests/basic.sh b/src/cmd/ksh93/tests/basic.sh
index 6b1feb4fb590..e83c01b021c6 100755
--- a/src/cmd/ksh93/tests/basic.sh
+++ b/src/cmd/ksh93/tests/basic.sh
@@ -927,15 +927,6 @@ esac
 # ======
 # Test exec optimization of last command in script or subshell
 
-(
-	ulimit -t unlimited 2>/dev/null  # fork subshell
-	print "${.sh.pid:-$("$SHELL" -c 'echo "$PPID"')}"  # fallback for pre-93u+m ksh without ${.sh.pid}
-	"$SHELL" -c 'print "$$"'
-) >out
-pid1= pid2=
-{ read pid1 && read pid2; } <out && let "pid1 == pid2" \
-|| err_exit "last command in forked subshell not exec-optimized ($pid1 != $pid2)"
-
 got=$(
 	ulimit -t unlimited 2>/dev/null  # fork subshell
 	print "${.sh.pid:-$("$SHELL" -c 'echo "$PPID"')}"  # fallback for pre-93u+m ksh without ${.sh.pid}
diff --git a/src/cmd/ksh93/tests/functions.sh b/src/cmd/ksh93/tests/functions.sh
index 46440296ea8f..ef64b47b17c8 100755
--- a/src/cmd/ksh93/tests/functions.sh
+++ b/src/cmd/ksh93/tests/functions.sh
@@ -1034,9 +1034,22 @@ function foo
 	typeset pid
 	$tmp1 > $tmp2 & pid=$!
 	wait $!
-	[[ $(< $tmp2) == $pid ]] || err_exit 'wrong PID for & job in function'
+	got=$(< $tmp2)
+	[[ $got == "$pid" ]] || err_exit 'wrong PID for & job in function' \
+		"(expected $(printf %q "$pid"), got $(printf %q "$got"))"
 }
 foo
+foo()
+{
+	$tmp1 > $tmp2 & pid=$!
+	wait $!
+	got=$(< $tmp2)
+	[[ $got == "$pid" ]] || err_exit 'wrong PID for & job in POSIX function' \
+		"(expected $(printf %q "$pid"), got $(printf %q "$got"))"
+}
+foo
+unset pid
+unset -f foo
 # make sure compiled functions work
 [[ $(tmp=$tmp $SHELL <<- \++++
 	cat > $tmp/functions <<- \EOF