The regent for Emperor Mu, Sima Yu the Prince of Kuaiji therefore invited Yin to participate in important government decisions.
In 350, intent on proving himself as much of a general as Huan, Yin had himself commissioned with a large army, preparing to recover central and northern China as rival Later Zhao was collapsing into civil war, but for reasons unknown delayed the campaign.
Around the new year 352, Huan, upset that his requests to lead armies north had been rebuffed by Yin and Sima Yu, mobilized his troops and gestured as if he were about to attack the capital.
Yin was shocked, and initially considered either resigning or send the imperial banner of peace (Zouyu Fan, 騶虞幡) to order Huan to stop.
The imperial government was compelled to demote Yin to commoner status and exile him to Xin'an (信安, in modern Quzhou, Zhejiang).