diff --git a/pysnooper/tracer.py b/pysnooper/tracer.py
index f5e965b..222efdc 100644
--- a/pysnooper/tracer.py
+++ b/pysnooper/tracer.py
@@ -29,6 +29,23 @@ RETURN_OPCODES = {
 }
 
 
+def call_ended_by_exception(frame, event, arg):
+    """Whether a 'return' event was caused by an exception, not a normal return.
+
+    On an exception the interpreter still emits a 'return' event with ``arg`` of
+    ``None``, so the last executed opcode is what tells them apart. A frame's
+    ``f_lasti`` can be ``-1`` (e.g. before any instruction has run); indexing
+    ``co_code[-1]`` would read the wrong opcode, so treat that as a normal
+    return. See https://github.com/cool-RR/PySnooper/issues/260.
+    """
+    if event != 'return' or arg is not None or frame.f_lasti < 0:
+        return False
+    code_byte = frame.f_code.co_code[frame.f_lasti]
+    if not isinstance(code_byte, int):
+        code_byte = ord(code_byte)
+    return opcode.opname[code_byte] not in RETURN_OPCODES
+
+
 def get_local_reprs(frame, watch=(), custom_repr=(), max_length=None, normalize=False):
     code = frame.f_code
     vars_order = (code.co_varnames + code.co_cellvars + code.co_freevars +
@@ -536,14 +553,7 @@ class Tracer:
         # If a call ends due to an exception, we still get a 'return' event
         # with arg = None. This seems to be the only way to tell the difference
         # https://stackoverflow.com/a/12800909/2482744
-        code_byte = frame.f_code.co_code[frame.f_lasti]
-        if not isinstance(code_byte, int):
-            code_byte = ord(code_byte)
-        ended_by_exception = (
-                event == 'return'
-                and arg is None
-                and opcode.opname[code_byte] not in RETURN_OPCODES
-        )
+        ended_by_exception = call_ended_by_exception(frame, event, arg)
 
         if ended_by_exception:
             self.write('{_FOREGROUND_RED}{indent}Call ended by exception{_STYLE_RESET_ALL}'.
diff --git a/tests/test_ended_by_exception.py b/tests/test_ended_by_exception.py
new file mode 100644
index 0000000..b8fc963
--- /dev/null
+++ b/tests/test_ended_by_exception.py
@@ -0,0 +1,41 @@
+"""Tests for call_ended_by_exception, the 'return'-via-exception detector.
+
+Regression test for https://github.com/cool-RR/PySnooper/issues/260: a frame's
+f_lasti can be -1, and co_code[-1] would read the wrong opcode and misreport a
+normal return as "Call ended by exception".
+"""
+
+import opcode
+from unittest.mock import Mock
+
+from pysnooper.tracer import call_ended_by_exception
+
+
+def _frame(co_code, f_lasti):
+    frame = Mock()
+    frame.f_lasti = f_lasti
+    frame.f_code.co_code = co_code
+    return frame
+
+
+def test_negative_f_lasti_is_not_an_exception():
+    # Last byte is a non-return opcode, so reading co_code[-1] (the old bug)
+    # would misreport an exception. With f_lasti == -1 it must be a normal
+    # return.
+    co_code = bytes([0, opcode.opmap["NOP"]])
+    assert call_ended_by_exception(_frame(co_code, -1), "return", None) is False
+
+
+def test_last_opcode_return_is_normal_return():
+    co_code = bytes([opcode.opmap["RETURN_VALUE"], 0])
+    assert call_ended_by_exception(_frame(co_code, 0), "return", None) is False
+
+
+def test_last_opcode_not_return_is_exception():
+    co_code = bytes([opcode.opmap["NOP"], 0])
+    assert call_ended_by_exception(_frame(co_code, 0), "return", None) is True
+
+
+def test_non_return_event_is_never_exception():
+    co_code = bytes([opcode.opmap["NOP"], 0])
+    assert call_ended_by_exception(_frame(co_code, 0), "call", None) is False