diff --git a/src/generator.c b/src/generator.c
index 50757137..b3fdbd36 100644
--- a/src/generator.c
+++ b/src/generator.c
@@ -104,7 +104,6 @@ struct proxy_instance {
 	pthread_mutex_t notify_lock;
 	notify_instance_t *notify_instances;
 	notify_instance_t *current_notify;
-	int notify_id;
 
 	pthread_t pth_precv;
 	pthread_t pth_psend;
@@ -122,6 +121,8 @@ struct proxy_instance {
 
 typedef struct proxy_instance proxy_instance_t;
 
+static int proxy_notify_id;	// Globally increasing notify id
+
 static ckmsgq_t *srvchk;	// Server check message queue
 
 static bool server_alive(ckpool_t *ckp, server_instance_t *si, bool pinging)
@@ -132,6 +133,9 @@ 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 +165,20 @@ 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;
 }
@@ -213,8 +219,10 @@ static void kill_server(server_instance_t *si)
 {
 	connsock_t *cs;
 
-	if (!si)
+	if (!si) // This shouldn't happen
 		return;
+
+	LOGNOTICE("Killing server");
 	cs = &si->cs;
 	close(cs->fd);
 	cs->fd = -1;
@@ -348,7 +356,7 @@ 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 +396,8 @@ 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);
@@ -482,6 +490,7 @@ static bool parse_subscribe(connsock_t *cs, proxy_instance_t *proxi)
 		LOGWARNING("Failed to receive line in parse_subscribe");
 		goto out;
 	}
+	LOGDEBUG("parse_subscribe received %s", cs->buf);
 	val = json_msg_result(cs->buf, &res_val);
 	if (!val) {
 		LOGWARNING("Failed to get a json result in parse_subscribe, got: %s", cs->buf);
@@ -588,14 +597,12 @@ retry:
 	json_decref(req);
 	if (!ret) {
 		LOGWARNING("Failed to send message in subscribe_stratum");
-		close(cs->fd);
 		goto out;
 	}
 	ret = parse_subscribe(cs, proxi);
 	if (ret)
 		goto out;
 
-	close(cs->fd);
 	if (proxi->no_params) {
 		LOGWARNING("Failed all subscription options in subscribe_stratum");
 		goto out;
@@ -616,10 +623,10 @@ retry:
 	goto retry;
 
 out:
-	/* Only keep any downstream connections if we're successfully resuming
-	 * to the existing stratum sessionid */
-	if (!ret || !proxi->sessionid)
-		send_proc(proxi->ckp->stratifier, "dropall");
+	if (!ret) {
+		close(cs->fd);
+		cs->fd = -1;
+	}
 	return ret;
 }
 
@@ -723,7 +730,7 @@ static bool parse_notify(proxy_instance_t *proxi, json_t *val)
 	ni->notify_time = time(NULL);
 
 	mutex_lock(&proxi->notify_lock);
-	ni->id = proxi->notify_id++;
+	ni->id = proxy_notify_id++;
 	HASH_ADD_INT(proxi->notify_instances, id, ni);
 	proxi->current_notify = ni;
 	mutex_unlock(&proxi->notify_lock);
@@ -1283,24 +1290,30 @@ 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 +1321,24 @@ 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 */
@@ -1345,8 +1366,8 @@ retry:
 		}
 	}
 	if (!alive) {
-		send_proc(ckp->stratifier, "dropall");
 		send_proc(ckp->connector, "reject");
+		send_proc(ckp->stratifier, "dropall");
 		if (!ckp->chosen_server) {
 			LOGWARNING("Failed to connect to any servers as proxy, retrying in 5s!");
 			sleep(5);
@@ -1357,7 +1378,6 @@ retry:
 	cs = alive->cs;
 	LOGNOTICE("Connected to upstream server %s:%s as proxy%s", cs->url, cs->port,
 		  ckp->passthrough ? " in passthrough mode" : "");
-	mutex_init(&alive->notify_lock);
 	if (ckp->passthrough) {
 		create_pthread(&alive->pth_precv, passthrough_recv, alive);
 		alive->passsends = create_ckmsgq(ckp, "passsend", &passthrough_send);
@@ -1372,15 +1392,21 @@ out:
 	return alive;
 }
 
-static void kill_proxy(proxy_instance_t *proxi)
+static void kill_proxy(ckpool_t *ckp, proxy_instance_t *proxi)
 {
 	notify_instance_t *ni, *tmp;
 	connsock_t *cs;
 
-	if (!proxi)
+	send_proc(ckp->connector, "reject");
+	send_proc(ckp->stratifier, "dropall");
+
+	if (!proxi) // This shouldn't happen
 		return;
+
+	LOGNOTICE("Killing proxy");
 	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 +1430,10 @@ static int proxy_loop(proc_instance_t *pi)
 	char *buf = NULL;
 
 reconnect:
-	if (proxi)
+	if (proxi) {
+		kill_proxy(ckp, proxi);
 		reconnecting = true;
+	}
 	proxi = live_proxy(ckp);
 	if (!proxi)
 		goto out;
@@ -1424,6 +1452,9 @@ 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 +1463,12 @@ 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 +1493,6 @@ 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 +1503,6 @@ 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")) {
@@ -1492,7 +1523,7 @@ retry:
 	close(sockd);
 	goto retry;
 out:
-	kill_proxy(proxi);
+	kill_proxy(ckp, proxi);
 	close(sockd);
 	return ret;
 }
@@ -1542,7 +1573,6 @@ 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;
@@ -1581,6 +1611,7 @@ static int proxy_mode(ckpool_t *ckp, proc_instance_t *pi)
 		proxi->si = si;
 		proxi->ckp = ckp;
 		proxi->cs = &si->cs;
+		mutex_init(&proxi->notify_lock);
 	}
 
 	if (ckp->btcds) {
@@ -1667,7 +1698,7 @@ 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)
diff --git a/src/stratifier.c b/src/stratifier.c
index 67863df0..bc350efa 100644
--- a/src/stratifier.c
+++ b/src/stratifier.c
@@ -744,8 +744,7 @@ static bool update_subscribe(ckpool_t *ckp)
 	free(buf);
 
 	ck_wlock(&workbase_lock);
-	if (!proxy_base.diff)
-		proxy_base.diff = 1;
+	proxy_base.diff = ckp->startdiff;
 	/* Length is checked by generator */
 	strcpy(proxy_base.enonce1, json_string_value(json_object_get(val, "enonce1")));
 	proxy_base.enonce1constlen = strlen(proxy_base.enonce1) / 2;