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diff --git a/conformance/specification-observations.txt b/conformance/specification-observations.txt
index f4633d4..ba2aa3e 100644
--- a/conformance/specification-observations.txt
+++ b/conformance/specification-observations.txt
@@ -22,3 +22,13 @@ acquires lower-case "h" in default case mode with count two. The line has one
lower-case "h", so movement applies the first partial endpoint at column 6 and
reports a failed search. The preview expectation remains the specified count-two
column set.
+
+OBS-003
+Source: specification.txt, sections 5.7, 7.2, and 12.3
+Fixture: SCN-0702-TEMP-SUCCESS
+Status: resolved during Phase 16
+
+Cursor presentation suppression applies to the target-input interval. The
+successful-acquisition fixture restores that presentation before it applies the
+resolved movement endpoint. This order also matches the Phase 12 transaction
+boundary.