Recent observations of VER J2227+608 reveal a broken power $gamma$-ray spectrum with the spectral index increasing from $sim 1.8$ in the GeV energy range to $sim 2.3$ in the TeV range. Such a spectral break can be attributed to radiative energy loss of energetic electrons in the leptonic scenario for the $gamma$-ray emission, which, in combination with characteristic age of the nearby pulsar, can be used to constrain magnetic field in the emission region. We show that the radio and X-ray observations can also be explained in such a scenario. In the hadronic scenario, the spectral break can be attributed to diffusion of energetic ions in a turbulent medium and detailed spectral measurement can be used to constrain the diffusion coefficient. These two models, however, predict drastically different spectra above 100 TeV, which will be uncovered with future high-resolution observations, such as LHAASO and/or CTA.
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