diff --git a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
index 4490f888d1a0..e73fe3722afa 100644
--- a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
+++ b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
@@ -752,14 +752,7 @@ func (r *HostedClusterReconciler) reconcile(ctx context.Context, req ctrl.Reques
 			// So consumers e.g. UI can categorize as good (True) / bad (False).
 			if conditionType == hyperv1.ClusterVersionSucceeding {
 				hcCVOCondition.Type = string(hyperv1.ClusterVersionSucceeding)
-				var status metav1.ConditionStatus
-				switch hcpCVOConditions[conditionType].Status {
-				case metav1.ConditionTrue:
-					status = metav1.ConditionFalse
-				case metav1.ConditionFalse:
-					status = metav1.ConditionTrue
-				}
-				hcCVOCondition.Status = status
+				hcCVOCondition.Status = invertConditionStatus(hcpCVOConditions[conditionType].Status)
 			}
 		}
 
@@ -3318,6 +3311,17 @@ func reconcileCAPIManagerClusterRoleBinding(binding *rbacv1.ClusterRoleBinding,
 	return nil
 }
 
+func invertConditionStatus(s metav1.ConditionStatus) metav1.ConditionStatus {
+	switch s {
+	case metav1.ConditionTrue:
+		return metav1.ConditionFalse
+	case metav1.ConditionFalse:
+		return metav1.ConditionTrue
+	default:
+		return metav1.ConditionUnknown
+	}
+}
+
 // computeClusterVersionStatus determines the ClusterVersionStatus of the
 // given HostedCluster and returns it.
 func computeClusterVersionStatus(clock clock.WithTickerAndDelayedExecution, hcluster *hyperv1.HostedCluster, hcp *hyperv1.HostedControlPlane) *hyperv1.ClusterVersionStatus {
diff --git a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller_test.go b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller_test.go
index 76c5b9538049..f4ce7ee8f84d 100644
--- a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller_test.go
+++ b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller_test.go
@@ -3995,6 +3995,47 @@ func TestIsProgressing(t *testing.T) {
 	}
 }
 
+func TestInvertConditionStatus(t *testing.T) {
+	t.Parallel()
+
+	testCases := []struct {
+		name           string
+		input          metav1.ConditionStatus
+		expectedStatus metav1.ConditionStatus
+	}{
+		{
+			name:           "When status is True it should invert to False",
+			input:          metav1.ConditionTrue,
+			expectedStatus: metav1.ConditionFalse,
+		},
+		{
+			name:           "When status is False it should invert to True",
+			input:          metav1.ConditionFalse,
+			expectedStatus: metav1.ConditionTrue,
+		},
+		{
+			name:           "When status is Unknown it should produce Unknown",
+			input:          metav1.ConditionUnknown,
+			expectedStatus: metav1.ConditionUnknown,
+		},
+		{
+			name:           "When status is empty string it should produce Unknown",
+			input:          metav1.ConditionStatus(""),
+			expectedStatus: metav1.ConditionUnknown,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			g := NewWithT(t)
+			result := invertConditionStatus(tc.input)
+			g.Expect(result).To(Equal(tc.expectedStatus))
+			g.Expect(result).ToNot(BeEmpty(), "Status must not be empty string — API server rejects it")
+		})
+	}
+}
+
 func TestComputeAWSDefaultSGDeletedCondition(t *testing.T) {
 	t.Parallel()
 
diff --git a/hypershift-operator/controllers/hostedcluster/reconcile_legacy.go b/hypershift-operator/controllers/hostedcluster/reconcile_legacy.go
index 4b84a70b8dea..9e36c7d392a9 100644
--- a/hypershift-operator/controllers/hostedcluster/reconcile_legacy.go
+++ b/hypershift-operator/controllers/hostedcluster/reconcile_legacy.go
@@ -434,14 +434,7 @@ func (r *HostedClusterReconciler) reconcileLegacy(ctx context.Context, req ctrl.
 			// So consumers e.g. UI can categorize as good (True) / bad (False).
 			if conditionType == hyperv1.ClusterVersionSucceeding {
 				hcCVOCondition.Type = string(hyperv1.ClusterVersionSucceeding)
-				var status metav1.ConditionStatus
-				switch hcpCVOConditions[conditionType].Status {
-				case metav1.ConditionTrue:
-					status = metav1.ConditionFalse
-				case metav1.ConditionFalse:
-					status = metav1.ConditionTrue
-				}
-				hcCVOCondition.Status = status
+				hcCVOCondition.Status = invertConditionStatus(hcpCVOConditions[conditionType].Status)
 			}
 		}