On September 20th, 1853 the Flying Cloud was reported capsized with a load of lumber off Racine, Wisconsin. Various accounts claimed she was a total loss, but three weeks later the schooner New Hampshire discovered the floating wreck and towed her into Muskegon, Illinois.

"The Racine-built schooner Flying Cloud was capsized in a squall approximately 8 miles off Racine on either the night of 9/17/1853 or the morning of 9/18/1853. The crew safely reached shore in the schooner's small boat and a propeller was said to be on its way to take the wreck in tow. (MS 9/20/1853). However, as of 9/22/1853, the vessel had still not been recovered." Racine Advocate 9/25/1853

"NEWS OF THE FLYING CLOUD.-The Grand River Times of the 27th. ult. states that the schooner Flying Cloud, which capsized off Racine some weeks since, and has since that time been floating in the lake, was towed by the schooner New Hampshire." Buffalo Daily Republic, November 4,1853

Last Document Of Enrollment: Milwauakee: 7/29/1853.
The Flying Cloud was listed as total loss ($4500) by underwriters but may have been salvaged: FP 11/2/1853 lists: "Towed to Muskegon last month."