It just happened again. I cancelled the job via Octoprint and then hit Octoprint's Home XY button. Print-head moved to X-home, then paused, then did back and forth movement, as it should, followed by Y-homing.
Here is the extract from Octoprint terminal log
Changing monitoring state from "Cancelling" to "Operational"
[...]
Send: N326 G9122
[...]
Recv: ok 326
Send: N327 G28 X0 Y020
Recv: ok 327
Send: N328 G90*25
[...]
Recv: busy:processing
[...]
Recv: busy:processing