diff --git a/server/src/com/cloud/capacity/CapacityManagerImpl.java b/server/src/com/cloud/capacity/CapacityManagerImpl.java
index 7563a0ebfa9..5f6dae15516 100755
--- a/server/src/com/cloud/capacity/CapacityManagerImpl.java
+++ b/server/src/com/cloud/capacity/CapacityManagerImpl.java
@@ -633,7 +633,7 @@ public class CapacityManagerImpl implements CapacityManager, StateListener<State
                 releaseVmCapacity(vm, false, false, oldHostId);
             }
         } else if (oldState == State.Stopped) {
-            if (event == Event.DestroyRequested) {
+            if (event == Event.DestroyRequested || event == Event.ExpungeOperation) {
                 releaseVmCapacity(vm, true, false, vm.getLastHostId());
             } else if(event == Event.AgentReportMigrated) {
                 releaseVmCapacity(vm, false, false, oldHostId);