diff --git a/hgext/largefiles/lfutil.py b/hgext/largefiles/lfutil.py
--- a/hgext/largefiles/lfutil.py
+++ b/hgext/largefiles/lfutil.py
@@ -319,6 +319,8 @@ def updatestandin(repo, standin):
         hash = hashfile(file)
         executable = getexecutable(file)
         writestandin(repo, standin, hash, executable)
+    else:
+        raise error.Abort(_('%s: file not found!') % splitstandin(standin))
 
 def readstandin(repo, filename, node=None):
     '''read hex hash from standin for filename at given node, or working
diff --git a/tests/test-largefiles-cache.t b/tests/test-largefiles-cache.t
--- a/tests/test-largefiles-cache.t
+++ b/tests/test-largefiles-cache.t
@@ -19,6 +19,12 @@ Create source repo, and commit adding la
   $ hg rm large
   $ hg commit -m 'branchhead without largefile' large
   $ hg up -qr 0
+  $ rm large
+  $ echo "0000000000000000000000000000000000000000" > .hglf/large
+  $ hg commit -m 'commit missing file with corrupt standin' large
+  abort: large: file not found!
+  [255]
+  $ hg up -Cqr 0
   $ cd ..
 
 Discard all cached largefiles in USERCACHE