diff --git a/components/ws-daemon/pkg/controller/workspace_controller.go b/components/ws-daemon/pkg/controller/workspace_controller.go
index 085e8d3dd49687..ea82a2f08fbd36 100644
--- a/components/ws-daemon/pkg/controller/workspace_controller.go
+++ b/components/ws-daemon/pkg/controller/workspace_controller.go
@@ -258,62 +258,68 @@ func (wsc *WorkspaceController) handleWorkspaceRunning(ctx context.Context, ws *
 }
 
 func (wsc *WorkspaceController) handleWorkspaceStop(ctx context.Context, ws *workspacev1.Workspace, req ctrl.Request) (result ctrl.Result, err error) {
-	log := log.FromContext(ctx)
 	span, ctx := opentracing.StartSpanFromContext(ctx, "handleWorkspaceStop")
 	defer tracing.FinishSpan(span, &err)
 
 	if ws.IsConditionTrue(workspacev1.WorkspaceConditionPodRejected) {
+		// edge case only exercised for rejected workspace pods
 		if ws.IsConditionPresent(workspacev1.WorkspaceConditionStateWiped) {
 			// we are done here
 			return ctrl.Result{}, nil
 		}
 
-		// in this case we are not interested in any backups, but instead are concerned with completely wiping all state that might be dangling somewhere
-		if ws.IsConditionTrue(workspacev1.WorkspaceConditionContainerRunning) {
-			// Container is still running, we need to wait for it to stop.
-			// We should get an event when the condition changes, but requeue
-			// anyways to make sure we act on it in time.
-			return ctrl.Result{RequeueAfter: 500 * time.Millisecond}, nil
-		}
+		return wsc.doWipeWorkspace(ctx, ws, req)
+	}
 
-		if wsc.latestWorkspace(ctx, ws) != nil {
-			return ctrl.Result{Requeue: true, RequeueAfter: 100 * time.Millisecond}, nil
-		}
+	// regular case
+	return wsc.doWorkspaceContentBackup(ctx, span, ws, req)
+}
 
-		setStateWipedCondition := func(s bool) {
-			err := retry.RetryOnConflict(retryParams, func() error {
-				if err := wsc.Get(ctx, req.NamespacedName, ws); err != nil {
-					return err
-				}
+func (wsc *WorkspaceController) doWipeWorkspace(ctx context.Context, ws *workspacev1.Workspace, req ctrl.Request) (result ctrl.Result, err error) {
+	log := log.FromContext(ctx)
 
-				if s {
-					ws.Status.SetCondition(workspacev1.NewWorkspaceConditionStateWiped("", metav1.ConditionTrue))
-				} else {
-					ws.Status.SetCondition(workspacev1.NewWorkspaceConditionStateWiped("", metav1.ConditionFalse))
-				}
-				return wsc.Client.Status().Update(ctx, ws)
-			})
-			if err != nil {
-				log.Error(err, "failed to set StateWiped condition")
+	// in this case we are not interested in any backups, but instead are concerned with completely wiping all state that might be dangling somewhere
+	if ws.IsConditionTrue(workspacev1.WorkspaceConditionContainerRunning) {
+		// Container is still running, we need to wait for it to stop.
+		// We should get an event when the condition changes, but requeue
+		// anyways to make sure we act on it in time.
+		return ctrl.Result{RequeueAfter: 500 * time.Millisecond}, nil
+	}
+
+	if wsc.latestWorkspace(ctx, ws) != nil {
+		return ctrl.Result{Requeue: true, RequeueAfter: 100 * time.Millisecond}, nil
+	}
+
+	setStateWipedCondition := func(s bool) {
+		err := retry.RetryOnConflict(retryParams, func() error {
+			if err := wsc.Get(ctx, req.NamespacedName, ws); err != nil {
+				return err
 			}
-		}
-		log.Info("handling workspace stop - wiping mode")
 
-		err = wsc.operations.WipeWorkspace(ctx, ws.Name)
+			if s {
+				ws.Status.SetCondition(workspacev1.NewWorkspaceConditionStateWiped("", metav1.ConditionTrue))
+			} else {
+				ws.Status.SetCondition(workspacev1.NewWorkspaceConditionStateWiped("", metav1.ConditionFalse))
+			}
+			return wsc.Client.Status().Update(ctx, ws)
+		})
 		if err != nil {
-			setStateWipedCondition(false)
-			wsc.emitEvent(ws, "Wiping", fmt.Errorf("failed to wipe workspace: %w", err))
-			return ctrl.Result{}, fmt.Errorf("failed to wipe workspace: %w", err)
+			log.Error(err, "failed to set StateWiped condition")
 		}
+	}
+	log.Info("handling workspace stop - wiping mode")
+	defer log.Info("handling workspace stop - wiping done.")
 
-		setStateWipedCondition(true)
-
-		log.Info("handling workspace stop - wiping done.")
-		return ctrl.Result{}, nil
+	err = wsc.operations.WipeWorkspace(ctx, ws.Name)
+	if err != nil {
+		setStateWipedCondition(false)
+		wsc.emitEvent(ws, "Wiping", fmt.Errorf("failed to wipe workspace: %w", err))
+		return ctrl.Result{}, fmt.Errorf("failed to wipe workspace: %w", err)
 	}
 
-	// regular case
-	return wsc.doWorkspaceContentBackup(ctx, span, ws, req)
+	setStateWipedCondition(true)
+
+	return ctrl.Result{}, nil
 }
 
 func (wsc *WorkspaceController) doWorkspaceContentBackup(ctx context.Context, span opentracing.Span, ws *workspacev1.Workspace, req ctrl.Request) (result ctrl.Result, err error) {