diff --git a/src/generator.c b/src/generator.c
index 50757137..23fa3250 100644
--- a/src/generator.c
+++ b/src/generator.c
@@ -132,6 +132,9 @@ static bool server_alive(ckpool_t *ckp, server_instance_t *si, bool pinging)
 	gbtbase_t *gbt;
 
 	cs = &si->cs;
+	/* Has this server already been reconnected? */
+	if (cs->fd > 0)
+		return true;
 	if (!extract_sockaddr(si->url, &cs->url, &cs->port)) {
 		LOGWARNING("Failed to extract address from %s", si->url);
 		return ret;
@@ -161,18 +164,20 @@ static bool server_alive(ckpool_t *ckp, server_instance_t *si, bool pinging)
 			LOGINFO("Failed to get test block template from %s:%s!",
 				cs->url, cs->port);
 		}
-		goto out_close;
+		goto out;
 	}
 	clear_gbtbase(gbt);
 	if (!validate_address(cs, ckp->btcaddress)) {
 		LOGWARNING("Invalid btcaddress: %s !", ckp->btcaddress);
-		goto out_close;
+		goto out;
 	}
 	ret = true;
-out_close:
-	if (!ret)
+out:
+	if (!ret) {
+		/* Close and invalidate the file handle */
 		close(cs->fd);
-	else
+		cs->fd = -1;
+	} else
 		keep_sockalive(cs->fd);
 	return ret;
 }
@@ -348,7 +353,7 @@ retry:
 			send_unix_msg(sockd, "true");
 		else
 			send_unix_msg(sockd, "false");
-	} else if (cmdmatch(buf, "fallback")) {
+	} else if (cmdmatch(buf, "reconnect")) {
 		goto reconnect;
 	} else if (cmdmatch(buf, "loglevel")) {
 		sscanf(buf, "loglevel=%d", &ckp->loglevel);
@@ -388,8 +393,8 @@ static bool connect_proxy(connsock_t *cs)
 {
 	cs->fd = connect_socket(cs->url, cs->port);
 	if (cs->fd < 0) {
-		LOGWARNING("Failed to connect socket to %s:%s in connect_proxy",
-			   cs->url, cs->port);
+		LOGINFO("Failed to connect socket to %s:%s in connect_proxy",
+			cs->url, cs->port);
 		return false;
 	}
 	keep_sockalive(cs->fd);
@@ -1283,24 +1288,30 @@ static void passthrough_add_send(proxy_instance_t *proxi, const char *msg)
 static bool proxy_alive(ckpool_t *ckp, server_instance_t *si, proxy_instance_t *proxi,
 			connsock_t *cs, bool pinging)
 {
+	bool ret = false;
+
+	/* Has this proxy already been reconnected? */
+	if (cs->fd > 0)
+		return true;
 	if (!extract_sockaddr(si->url, &cs->url, &cs->port)) {
 		LOGWARNING("Failed to extract address from %s", si->url);
-		return false;
+		return ret;
 	}
 	if (!connect_proxy(cs)) {
 		if (!pinging) {
 			LOGINFO("Failed to connect to %s:%s in proxy_mode!",
 				cs->url, cs->port);
 		}
-		return false;
+		return ret;
 	}
 	if (ckp->passthrough) {
 		if (!passthrough_stratum(cs, proxi)) {
 			LOGWARNING("Failed initial passthrough to %s:%s !",
 				   cs->url, cs->port);
-			return false;
+			goto out;
 		}
-		return true;
+		ret = true;
+		goto out;
 	}
 	/* Test we can connect, authorise and get stratum information */
 	if (!subscribe_stratum(cs, proxi)) {
@@ -1308,16 +1319,24 @@ static bool proxy_alive(ckpool_t *ckp, server_instance_t *si, proxy_instance_t *
 			LOGINFO("Failed initial subscribe to %s:%s !",
 				cs->url, cs->port);
 		}
-		return false;
+		goto out;
 	}
 	if (!auth_stratum(cs, proxi)) {
 		if (!pinging) {
 			LOGWARNING("Failed initial authorise to %s:%s with %s:%s !",
 				   cs->url, cs->port, si->auth, si->pass);
 		}
-		return false;
+		goto out;
 	}
-	return true;
+	ret = true;
+out:
+	if (!ret) {
+		/* Close and invalidate the file handle */
+		close(cs->fd);
+		cs->fd = -1;
+	} else
+		keep_sockalive(cs->fd);
+	return ret;
 }
 
 /* Cycle through the available proxies and find the first alive one */
@@ -1381,6 +1400,7 @@ static void kill_proxy(proxy_instance_t *proxi)
 		return;
 	cs = proxi->cs;
 	close(cs->fd);
+	cs->fd = -1;
 
 	/* All our notify data is invalid if we reconnect so discard them */
 	mutex_lock(&proxi->notify_lock);
@@ -1404,8 +1424,10 @@ static int proxy_loop(proc_instance_t *pi)
 	char *buf = NULL;
 
 reconnect:
-	if (proxi)
+	if (proxi) {
+		kill_proxy(proxi);
 		reconnecting = true;
+	}
 	proxi = live_proxy(ckp);
 	if (!proxi)
 		goto out;
@@ -1424,6 +1446,9 @@ reconnect:
 		proxi->notified = false;
 	}
 
+retry:
+	ckmsgq_add(srvchk, proxi->si);
+
 	do {
 		selret = wait_read_select(us->sockd, 5);
 		if (!selret && !ping_main(ckp)) {
@@ -1432,7 +1457,12 @@ reconnect:
 			goto out;
 		}
 	} while (selret < 1);
-retry:
+
+	if (unlikely(proxi->cs->fd < 0)) {
+		LOGWARNING("Upstream socket invalidated, will attempt failover");
+		goto reconnect;
+	}
+
 	sockd = accept(us->sockd, NULL, NULL);
 	if (sockd < 0) {
 		LOGEMERG("Failed to accept on proxy socket");
@@ -1457,9 +1487,6 @@ retry:
 	} else if (cmdmatch(buf, "getdiff")) {
 		send_diff(proxi, sockd);
 	} else if (cmdmatch(buf, "reconnect")) {
-		kill_proxy(proxi);
-		pthread_cancel(proxi->pth_precv);
-		pthread_cancel(proxi->pth_psend);
 		goto reconnect;
 	} else if (cmdmatch(buf, "submitblock:")) {
 		if (ckp->btcdbackup) {
@@ -1470,8 +1497,6 @@ retry:
 				LOGWARNING("Block rejected locally.");
 		} else
 			LOGNOTICE("No backup btcd to send block to ourselves");
-	} else if (cmdmatch(buf, "fallback")) {
-		goto reconnect;
 	} else if (cmdmatch(buf, "loglevel")) {
 		sscanf(buf, "loglevel=%d", &ckp->loglevel);
 	} else if (cmdmatch(buf, "ping")) {
@@ -1542,7 +1567,6 @@ static bool alive_btcd(server_instance_t *si)
 		LOGWARNING("Failed to create base64 auth from btcd %s", userpass);
 		return false;
 	}
-	cs->fd = connect_socket(cs->url, cs->port);
 	if (cs->fd < 0) {
 		LOGWARNING("Failed to connect socket to btcd %s:%s !", cs->url, cs->port);
 		return false;
@@ -1667,7 +1691,7 @@ static void server_watchdog(ckpool_t *ckp, server_instance_t *cursi)
 			break;
 	}
 	if (alive)
-		send_proc(ckp->generator, "fallback");
+		send_proc(ckp->generator, "reconnect");
 }
 
 int generator(proc_instance_t *pi)