diff --git a/tests/integration/src/rust_masm_tests/rust_sdk/mod.rs b/tests/integration/src/rust_masm_tests/rust_sdk/mod.rs
index b3b5440bc..277b612da 100644
--- a/tests/integration/src/rust_masm_tests/rust_sdk/mod.rs
+++ b/tests/integration/src/rust_masm_tests/rust_sdk/mod.rs
@@ -99,24 +99,6 @@ impl Note {
     test.compile_package();
 }
 
-/// Regression test for https://github.com/0xMiden/compiler/issues/831
-///
-/// Previously, compilation could panic during MASM codegen with:
-/// `invalid stack offset for movup: 16 is out of range`.
-#[test]
-fn rust_sdk_invalid_stack_offset_movup_16_issue_831() {
-    let config = WasmTranslationConfig::default();
-    let mut test = CompilerTest::rust_source_cargo_miden(
-        "../rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup",
-        config,
-        [],
-    );
-
-    // Ensure the crate compiles all the way to a package. This previously triggered the #831
-    // panic in MASM codegen.
-    let package = test.compile_package();
-}
-
 #[test]
 fn rust_sdk_cross_ctx_account_and_note() {
     let config = WasmTranslationConfig::default();
diff --git a/tests/lit/swapp/codegen_succeeds.masm b/tests/lit/swapp/codegen_succeeds.masm
new file mode 100644
index 000000000..0385809c1
--- /dev/null
+++ b/tests/lit/swapp/codegen_succeeds.masm
@@ -0,0 +1,8 @@
+;; Regression test for https://github.com/0xMiden/compiler/issues/831
+;;
+;; Previously, compilation could panic during MASM codegen with:
+;; `invalid stack offset for movup: 16 is out of range`.
+;;
+;; RUN: env CARGO_TARGET_DIR=%target_dir/lit/swapp cargo miden build --release --manifest-path %S/test-project/Cargo.toml 2>&1 | filecheck %s
+
+;; CHECK-NOT: error
diff --git a/tests/lit/swapp/issue831.masm b/tests/lit/swapp/issue831.masm
new file mode 100644
index 000000000..fc8ff8bbb
--- /dev/null
+++ b/tests/lit/swapp/issue831.masm
@@ -0,0 +1,8 @@
+;; Regression test for https://github.com/0xMiden/compiler/issues/831
+;;
+;; Verifies that compilation does not panic with:
+;; `invalid stack offset for movup: 16 is out of range`
+;;
+;; RUN: env CARGO_TARGET_DIR=%target_dir/lit/swapp cargo miden build --release --manifest-path %S/test-project/Cargo.toml 2>&1 | filecheck %s
+
+;; CHECK-NOT: invalid stack offset for movup: 16 is out of range
diff --git a/tests/lit/swapp/lit.suite.toml b/tests/lit/swapp/lit.suite.toml
new file mode 100644
index 000000000..982d54d59
--- /dev/null
+++ b/tests/lit/swapp/lit.suite.toml
@@ -0,0 +1,5 @@
+name = "swapp"
+patterns = ["*.masm"]
+working_dir = "../../../"
+
+[format.shtest]
diff --git a/tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/.cargo/config.toml b/tests/lit/swapp/test-project/.cargo/config.toml
similarity index 100%
rename from tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/.cargo/config.toml
rename to tests/lit/swapp/test-project/.cargo/config.toml
diff --git a/tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/.gitignore b/tests/lit/swapp/test-project/.gitignore
similarity index 100%
rename from tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/.gitignore
rename to tests/lit/swapp/test-project/.gitignore
diff --git a/tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/Cargo.toml b/tests/lit/swapp/test-project/Cargo.toml
similarity index 100%
rename from tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/Cargo.toml
rename to tests/lit/swapp/test-project/Cargo.toml
diff --git a/tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/src/lib.rs b/tests/lit/swapp/test-project/src/lib.rs
similarity index 100%
rename from tests/rust-apps-wasm/rust-sdk/issue-invalid-stack-offset-movup/src/lib.rs
rename to tests/lit/swapp/test-project/src/lib.rs