Switch Sha256 to using bitcoin_hashes and our own HKDF
[rust-lightning] / src / ln / channelmanager.rs
index 51bf27045f8c21e21e68b30b2fbd32f99c19c1a4..28bf4fd7f3906c395d3959b915a8e74c09a4265d 100644 (file)
@@ -12,8 +12,11 @@ use bitcoin::blockdata::block::BlockHeader;
 use bitcoin::blockdata::transaction::Transaction;
 use bitcoin::blockdata::constants::genesis_block;
 use bitcoin::network::constants::Network;
-use bitcoin::network::serialize::BitcoinHash;
-use bitcoin::util::hash::Sha256dHash;
+use bitcoin::util::hash::{BitcoinHash, Sha256dHash};
+
+use bitcoin_hashes::{Hash, HashEngine};
+use bitcoin_hashes::hmac::{Hmac, HmacEngine};
+use bitcoin_hashes::sha256::Hash as Sha256;
 
 use secp256k1::key::{SecretKey,PublicKey};
 use secp256k1::{Secp256k1,Message};
@@ -23,23 +26,20 @@ use secp256k1;
 use chain::chaininterface::{BroadcasterInterface,ChainListener,ChainWatchInterface,FeeEstimator};
 use chain::transaction::OutPoint;
 use ln::channel::{Channel, ChannelError};
-use ln::channelmonitor::{ChannelMonitor, ChannelMonitorUpdateErr, ManyChannelMonitor, CLTV_CLAIM_BUFFER, HTLC_FAIL_TIMEOUT_BLOCKS};
+use ln::channelmonitor::{ChannelMonitor, ChannelMonitorUpdateErr, ManyChannelMonitor, CLTV_CLAIM_BUFFER, HTLC_FAIL_TIMEOUT_BLOCKS, HTLC_FAIL_ANTI_REORG_DELAY};
 use ln::router::{Route,RouteHop};
 use ln::msgs;
 use ln::msgs::{ChannelMessageHandler, DecodeError, HandleError};
 use chain::keysinterface::KeysInterface;
 use util::config::UserConfig;
 use util::{byte_utils, events, internal_traits, rng};
-use util::sha2::Sha256;
 use util::ser::{Readable, ReadableArgs, Writeable, Writer};
 use util::chacha20poly1305rfc::ChaCha20;
 use util::logger::Logger;
 use util::errors::APIError;
+use util::errors;
 
 use crypto;
-use crypto::mac::{Mac,MacResult};
-use crypto::hmac::Hmac;
-use crypto::digest::Digest;
 use crypto::symmetriccipher::SynchronousStreamCipher;
 
 use std::{cmp, ptr, mem};
@@ -64,6 +64,7 @@ use std::time::{Instant,Duration};
 mod channel_held_info {
        use ln::msgs;
        use ln::router::Route;
+       use ln::channelmanager::PaymentHash;
        use secp256k1::key::SecretKey;
 
        /// Stores the info we will need to send when we want to forward an HTLC onwards
@@ -71,7 +72,7 @@ mod channel_held_info {
        pub struct PendingForwardHTLCInfo {
                pub(super) onion_packet: Option<msgs::OnionPacket>,
                pub(super) incoming_shared_secret: [u8; 32],
-               pub(super) payment_hash: [u8; 32],
+               pub(super) payment_hash: PaymentHash,
                pub(super) short_channel_id: u64,
                pub(super) amt_to_forward: u64,
                pub(super) outgoing_cltv_value: u32,
@@ -91,7 +92,7 @@ mod channel_held_info {
        }
 
        /// Tracks the inbound corresponding to an outbound HTLC
-       #[derive(Clone)]
+       #[derive(Clone, PartialEq)]
        pub struct HTLCPreviousHopData {
                pub(super) short_channel_id: u64,
                pub(super) htlc_id: u64,
@@ -99,7 +100,7 @@ mod channel_held_info {
        }
 
        /// Tracks the inbound corresponding to an outbound HTLC
-       #[derive(Clone)]
+       #[derive(Clone, PartialEq)]
        pub enum HTLCSource {
                PreviousHopData(HTLCPreviousHopData),
                OutboundRoute {
@@ -134,9 +135,24 @@ mod channel_held_info {
 }
 pub(super) use self::channel_held_info::*;
 
+/// payment_hash type, use to cross-lock hop
+#[derive(Hash, Copy, Clone, PartialEq, Eq, Debug)]
+pub struct PaymentHash(pub [u8;32]);
+/// payment_preimage type, use to route payment between hop
+#[derive(Hash, Copy, Clone, PartialEq, Eq, Debug)]
+pub struct PaymentPreimage(pub [u8;32]);
+
+type ShutdownResult = (Vec<Transaction>, Vec<(HTLCSource, PaymentHash)>);
+
+/// Error type returned across the channel_state mutex boundary. When an Err is generated for a
+/// Channel, we generally end up with a ChannelError::Close for which we have to close the channel
+/// immediately (ie with no further calls on it made). Thus, this step happens inside a
+/// channel_state lock. We then return the set of things that need to be done outside the lock in
+/// this struct and call handle_error!() on it.
+
 struct MsgHandleErrInternal {
        err: msgs::HandleError,
-       needs_channel_force_close: bool,
+       shutdown_finish: Option<(ShutdownResult, Option<msgs::ChannelUpdate>)>,
 }
 impl MsgHandleErrInternal {
        #[inline]
@@ -151,11 +167,15 @@ impl MsgHandleErrInternal {
                                        },
                                }),
                        },
-                       needs_channel_force_close: false,
+                       shutdown_finish: None,
                }
        }
        #[inline]
-       fn send_err_msg_close_chan(err: &'static str, channel_id: [u8; 32]) -> Self {
+       fn from_no_close(err: msgs::HandleError) -> Self {
+               Self { err, shutdown_finish: None }
+       }
+       #[inline]
+       fn from_finish_shutdown(err: &'static str, channel_id: [u8; 32], shutdown_res: ShutdownResult, channel_update: Option<msgs::ChannelUpdate>) -> Self {
                Self {
                        err: HandleError {
                                err,
@@ -166,18 +186,10 @@ impl MsgHandleErrInternal {
                                        },
                                }),
                        },
-                       needs_channel_force_close: true,
+                       shutdown_finish: Some((shutdown_res, channel_update)),
                }
        }
        #[inline]
-       fn from_maybe_close(err: msgs::HandleError) -> Self {
-               Self { err, needs_channel_force_close: true }
-       }
-       #[inline]
-       fn from_no_close(err: msgs::HandleError) -> Self {
-               Self { err, needs_channel_force_close: false }
-       }
-       #[inline]
        fn from_chan_no_close(err: ChannelError, channel_id: [u8; 32]) -> Self {
                Self {
                        err: match err {
@@ -195,42 +207,11 @@ impl MsgHandleErrInternal {
                                        }),
                                },
                        },
-                       needs_channel_force_close: false,
-               }
-       }
-       #[inline]
-       fn from_chan_maybe_close(err: ChannelError, channel_id: [u8; 32]) -> Self {
-               Self {
-                       err: match err {
-                               ChannelError::Ignore(msg) => HandleError {
-                                       err: msg,
-                                       action: Some(msgs::ErrorAction::IgnoreError),
-                               },
-                               ChannelError::Close(msg) => HandleError {
-                                       err: msg,
-                                       action: Some(msgs::ErrorAction::SendErrorMessage {
-                                               msg: msgs::ErrorMessage {
-                                                       channel_id,
-                                                       data: msg.to_string()
-                                               },
-                                       }),
-                               },
-                       },
-                       needs_channel_force_close: true,
+                       shutdown_finish: None,
                }
        }
 }
 
-/// Pass to fail_htlc_backwwards to indicate the reason to fail the payment
-/// after a PaymentReceived event.
-#[derive(PartialEq)]
-pub enum PaymentFailReason {
-       /// Indicate the preimage for payment_hash is not known after a PaymentReceived event
-       PreimageUnknown,
-       /// Indicate the payment amount is incorrect ( received is < expected or > 2*expected ) after a PaymentReceived event
-       AmountMismatch,
-}
-
 /// We hold back HTLCs we intend to relay for a random interval in the range (this, 5*this). This
 /// provides some limited amount of privacy. Ideally this would range from somewhere like 1 second
 /// to 30 seconds, but people expect lightning to be, you know, kinda fast, sadly. We could
@@ -267,7 +248,7 @@ struct ChannelHolder {
        /// Note that while this is held in the same mutex as the channels themselves, no consistency
        /// guarantees are made about the channels given here actually existing anymore by the time you
        /// go to read them!
-       claimable_htlcs: HashMap<[u8; 32], Vec<HTLCPreviousHopData>>,
+       claimable_htlcs: HashMap<PaymentHash, Vec<HTLCPreviousHopData>>,
        /// Messages to send to peers - pushed to in the same lock that they are generated in (except
        /// for broadcast messages, where ordering isn't as strict).
        pending_msg_events: Vec<events::MessageSendEvent>,
@@ -277,7 +258,7 @@ struct MutChannelHolder<'a> {
        short_to_id: &'a mut HashMap<u64, [u8; 32]>,
        next_forward: &'a mut Instant,
        forward_htlcs: &'a mut HashMap<u64, Vec<HTLCForwardInfo>>,
-       claimable_htlcs: &'a mut HashMap<[u8; 32], Vec<HTLCPreviousHopData>>,
+       claimable_htlcs: &'a mut HashMap<PaymentHash, Vec<HTLCPreviousHopData>>,
        pending_msg_events: &'a mut Vec<events::MessageSendEvent>,
 }
 impl ChannelHolder {
@@ -351,16 +332,17 @@ pub struct ChannelManager {
 /// ie the node we forwarded the payment on to should always have enough room to reliably time out
 /// the HTLC via a full update_fail_htlc/commitment_signed dance before we hit the
 /// CLTV_CLAIM_BUFFER point (we static assert that its at least 3 blocks more).
-const CLTV_EXPIRY_DELTA: u16 = 6 * 24 * 2; //TODO?
+const CLTV_EXPIRY_DELTA: u16 = 6 * 12; //TODO?
 const CLTV_FAR_FAR_AWAY: u32 = 6 * 24 * 7; //TODO?
 
-// Check that our CLTV_EXPIRY is at least CLTV_CLAIM_BUFFER + 2*HTLC_FAIL_TIMEOUT_BLOCKS, ie that
-// if the next-hop peer fails the HTLC within HTLC_FAIL_TIMEOUT_BLOCKS then we'll still have
-// HTLC_FAIL_TIMEOUT_BLOCKS left to fail it backwards ourselves before hitting the
-// CLTV_CLAIM_BUFFER point and failing the channel on-chain to time out the HTLC.
+// Check that our CLTV_EXPIRY is at least CLTV_CLAIM_BUFFER + 2*HTLC_FAIL_TIMEOUT_BLOCKS +
+// HTLC_FAIL_ANTI_REORG_DELAY, ie that if the next-hop peer fails the HTLC within
+// HTLC_FAIL_TIMEOUT_BLOCKS then we'll still have HTLC_FAIL_TIMEOUT_BLOCKS left to fail it
+// backwards ourselves before hitting the CLTV_CLAIM_BUFFER point and failing the channel
+// on-chain to time out the HTLC.
 #[deny(const_err)]
 #[allow(dead_code)]
-const CHECK_CLTV_EXPIRY_SANITY: u32 = CLTV_EXPIRY_DELTA as u32 - 2*HTLC_FAIL_TIMEOUT_BLOCKS - CLTV_CLAIM_BUFFER;
+const CHECK_CLTV_EXPIRY_SANITY: u32 = CLTV_EXPIRY_DELTA as u32 - 2*HTLC_FAIL_TIMEOUT_BLOCKS - CLTV_CLAIM_BUFFER - HTLC_FAIL_ANTI_REORG_DELAY;
 
 // Check for ability of an attacker to make us fail on-chain by delaying inbound claim. See
 // ChannelMontior::would_broadcast_at_height for a description of why this is needed.
@@ -405,6 +387,119 @@ pub struct ChannelDetails {
        pub user_id: u64,
 }
 
+macro_rules! handle_error {
+       ($self: ident, $internal: expr, $their_node_id: expr) => {
+               match $internal {
+                       Ok(msg) => Ok(msg),
+                       Err(MsgHandleErrInternal { err, shutdown_finish }) => {
+                               if let Some((shutdown_res, update_option)) = shutdown_finish {
+                                       $self.finish_force_close_channel(shutdown_res);
+                                       if let Some(update) = update_option {
+                                               let mut channel_state = $self.channel_state.lock().unwrap();
+                                               channel_state.pending_msg_events.push(events::MessageSendEvent::BroadcastChannelUpdate {
+                                                       msg: update
+                                               });
+                                       }
+                               }
+                               Err(err)
+                       },
+               }
+       }
+}
+
+macro_rules! break_chan_entry {
+       ($self: ident, $res: expr, $channel_state: expr, $entry: expr) => {
+               match $res {
+                       Ok(res) => res,
+                       Err(ChannelError::Ignore(msg)) => {
+                               break Err(MsgHandleErrInternal::from_chan_no_close(ChannelError::Ignore(msg), $entry.key().clone()))
+                       },
+                       Err(ChannelError::Close(msg)) => {
+                               log_trace!($self, "Closing channel {} due to Close-required error: {}", log_bytes!($entry.key()[..]), msg);
+                               let (channel_id, mut chan) = $entry.remove_entry();
+                               if let Some(short_id) = chan.get_short_channel_id() {
+                                       $channel_state.short_to_id.remove(&short_id);
+                               }
+                               break Err(MsgHandleErrInternal::from_finish_shutdown(msg, channel_id, chan.force_shutdown(), $self.get_channel_update(&chan).ok()))
+                       },
+               }
+       }
+}
+
+macro_rules! try_chan_entry {
+       ($self: ident, $res: expr, $channel_state: expr, $entry: expr) => {
+               match $res {
+                       Ok(res) => res,
+                       Err(ChannelError::Ignore(msg)) => {
+                               return Err(MsgHandleErrInternal::from_chan_no_close(ChannelError::Ignore(msg), $entry.key().clone()))
+                       },
+                       Err(ChannelError::Close(msg)) => {
+                               log_trace!($self, "Closing channel {} due to Close-required error: {}", log_bytes!($entry.key()[..]), msg);
+                               let (channel_id, mut chan) = $entry.remove_entry();
+                               if let Some(short_id) = chan.get_short_channel_id() {
+                                       $channel_state.short_to_id.remove(&short_id);
+                               }
+                               return Err(MsgHandleErrInternal::from_finish_shutdown(msg, channel_id, chan.force_shutdown(), $self.get_channel_update(&chan).ok()))
+                       },
+               }
+       }
+}
+
+macro_rules! return_monitor_err {
+       ($self: expr, $err: expr, $channel_state: expr, $entry: expr, $action_type: path) => {
+               return_monitor_err!($self, $err, $channel_state, $entry, $action_type, Vec::new(), Vec::new())
+       };
+       ($self: expr, $err: expr, $channel_state: expr, $entry: expr, $action_type: path, $raa_first_dropped_cs: expr) => {
+               if $action_type != RAACommitmentOrder::RevokeAndACKFirst { panic!("Bad return_monitor_err call!"); }
+               return_monitor_err!($self, $err, $channel_state, $entry, $action_type, Vec::new(), Vec::new(), $raa_first_dropped_cs)
+       };
+       ($self: expr, $err: expr, $channel_state: expr, $entry: expr, $action_type: path, $failed_forwards: expr, $failed_fails: expr) => {
+               return_monitor_err!($self, $err, $channel_state, $entry, $action_type, $failed_forwards, $failed_fails, false)
+       };
+       ($self: expr, $err: expr, $channel_state: expr, $entry: expr, $action_type: path, $failed_forwards: expr, $failed_fails: expr, $raa_first_dropped_cs: expr) => {
+               match $err {
+                       ChannelMonitorUpdateErr::PermanentFailure => {
+                               let (channel_id, mut chan) = $entry.remove_entry();
+                               if let Some(short_id) = chan.get_short_channel_id() {
+                                       $channel_state.short_to_id.remove(&short_id);
+                               }
+                               // TODO: $failed_fails is dropped here, which will cause other channels to hit the
+                               // chain in a confused state! We need to move them into the ChannelMonitor which
+                               // will be responsible for failing backwards once things confirm on-chain.
+                               // It's ok that we drop $failed_forwards here - at this point we'd rather they
+                               // broadcast HTLC-Timeout and pay the associated fees to get their funds back than
+                               // us bother trying to claim it just to forward on to another peer. If we're
+                               // splitting hairs we'd prefer to claim payments that were to us, but we haven't
+                               // given up the preimage yet, so might as well just wait until the payment is
+                               // retried, avoiding the on-chain fees.
+                               return Err(MsgHandleErrInternal::from_finish_shutdown("ChannelMonitor storage failure", channel_id, chan.force_shutdown(), $self.get_channel_update(&chan).ok()))
+                       },
+                       ChannelMonitorUpdateErr::TemporaryFailure => {
+                               $entry.get_mut().monitor_update_failed($action_type, $failed_forwards, $failed_fails, $raa_first_dropped_cs);
+                               return Err(MsgHandleErrInternal::from_chan_no_close(ChannelError::Ignore("Failed to update ChannelMonitor"), *$entry.key()));
+                       },
+               }
+       }
+}
+
+// Does not break in case of TemporaryFailure!
+macro_rules! maybe_break_monitor_err {
+       ($self: expr, $err: expr, $channel_state: expr, $entry: expr, $action_type: path) => {
+               match $err {
+                       ChannelMonitorUpdateErr::PermanentFailure => {
+                               let (channel_id, mut chan) = $entry.remove_entry();
+                               if let Some(short_id) = chan.get_short_channel_id() {
+                                       $channel_state.short_to_id.remove(&short_id);
+                               }
+                               break Err(MsgHandleErrInternal::from_finish_shutdown("ChannelMonitor storage failure", channel_id, chan.force_shutdown(), $self.get_channel_update(&chan).ok()))
+                       },
+                       ChannelMonitorUpdateErr::TemporaryFailure => {
+                               $entry.get_mut().monitor_update_failed($action_type, Vec::new(), Vec::new(), false);
+                       },
+               }
+       }
+}
+
 impl ChannelManager {
        /// Constructs a new ChannelManager to hold several channels and route between them.
        ///
@@ -558,8 +653,7 @@ impl ChannelManager {
                        }
                };
                for htlc_source in failed_htlcs.drain(..) {
-                       // unknown_next_peer...I dunno who that is anymore....
-                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 8, data: Vec::new() });
                }
                let chan_update = if let Some(chan) = chan_option {
                        if let Ok(update) = self.get_channel_update(&chan) {
@@ -578,22 +672,15 @@ impl ChannelManager {
        }
 
        #[inline]
-       fn finish_force_close_channel(&self, shutdown_res: (Vec<Transaction>, Vec<(HTLCSource, [u8; 32])>)) {
+       fn finish_force_close_channel(&self, shutdown_res: ShutdownResult) {
                let (local_txn, mut failed_htlcs) = shutdown_res;
+               log_trace!(self, "Finishing force-closure of channel with {} transactions to broadcast and {} HTLCs to fail", local_txn.len(), failed_htlcs.len());
                for htlc_source in failed_htlcs.drain(..) {
-                       // unknown_next_peer...I dunno who that is anymore....
-                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 8, data: Vec::new() });
                }
                for tx in local_txn {
                        self.tx_broadcaster.broadcast_transaction(&tx);
                }
-               //TODO: We need to have a way where outbound HTLC claims can result in us claiming the
-               //now-on-chain HTLC output for ourselves (and, thereafter, passing the HTLC backwards).
-               //TODO: We need to handle monitoring of pending offered HTLCs which just hit the chain and
-               //may be claimed, resulting in us claiming the inbound HTLCs (and back-failing after
-               //timeouts are hit and our claims confirm).
-               //TODO: In any case, we need to make sure we remove any pending htlc tracking (via
-               //fail_backwards or claim_funds) eventually for all HTLCs that were in the channel
        }
 
        /// Force closes a channel, immediately broadcasting the latest local commitment transaction to
@@ -613,6 +700,7 @@ impl ChannelManager {
                                return;
                        }
                };
+               log_trace!(self, "Force-closing channel {}", log_bytes!(channel_id[..]));
                self.finish_force_close_channel(chan.force_shutdown());
                if let Ok(update) = self.get_channel_update(&chan) {
                        let mut channel_state = self.channel_state.lock().unwrap();
@@ -630,70 +718,35 @@ impl ChannelManager {
                }
        }
 
-       fn handle_monitor_update_fail(&self, mut channel_state_lock: MutexGuard<ChannelHolder>, channel_id: &[u8; 32], err: ChannelMonitorUpdateErr, reason: RAACommitmentOrder) {
-               match err {
-                       ChannelMonitorUpdateErr::PermanentFailure => {
-                               let mut chan = {
-                                       let channel_state = channel_state_lock.borrow_parts();
-                                       let chan = channel_state.by_id.remove(channel_id).expect("monitor_update_failed must be called within the same lock as the channel get!");
-                                       if let Some(short_id) = chan.get_short_channel_id() {
-                                               channel_state.short_to_id.remove(&short_id);
-                                       }
-                                       chan
-                               };
-                               mem::drop(channel_state_lock);
-                               self.finish_force_close_channel(chan.force_shutdown());
-                               if let Ok(update) = self.get_channel_update(&chan) {
-                                       let mut channel_state = self.channel_state.lock().unwrap();
-                                       channel_state.pending_msg_events.push(events::MessageSendEvent::BroadcastChannelUpdate {
-                                               msg: update
-                                       });
-                               }
-                       },
-                       ChannelMonitorUpdateErr::TemporaryFailure => {
-                               let channel = channel_state_lock.by_id.get_mut(channel_id).expect("monitor_update_failed must be called within the same lock as the channel get!");
-                               channel.monitor_update_failed(reason);
-                       },
-               }
-       }
-
        #[inline]
        fn gen_rho_mu_from_shared_secret(shared_secret: &[u8]) -> ([u8; 32], [u8; 32]) {
                assert_eq!(shared_secret.len(), 32);
                ({
-                       let mut hmac = Hmac::new(Sha256::new(), &[0x72, 0x68, 0x6f]); // rho
+                       let mut hmac = HmacEngine::<Sha256>::new(&[0x72, 0x68, 0x6f]); // rho
                        hmac.input(&shared_secret[..]);
-                       let mut res = [0; 32];
-                       hmac.raw_result(&mut res);
-                       res
+                       Hmac::from_engine(hmac).into_inner()
                },
                {
-                       let mut hmac = Hmac::new(Sha256::new(), &[0x6d, 0x75]); // mu
+                       let mut hmac = HmacEngine::<Sha256>::new(&[0x6d, 0x75]); // mu
                        hmac.input(&shared_secret[..]);
-                       let mut res = [0; 32];
-                       hmac.raw_result(&mut res);
-                       res
+                       Hmac::from_engine(hmac).into_inner()
                })
        }
 
        #[inline]
        fn gen_um_from_shared_secret(shared_secret: &[u8]) -> [u8; 32] {
                assert_eq!(shared_secret.len(), 32);
-               let mut hmac = Hmac::new(Sha256::new(), &[0x75, 0x6d]); // um
+               let mut hmac = HmacEngine::<Sha256>::new(&[0x75, 0x6d]); // um
                hmac.input(&shared_secret[..]);
-               let mut res = [0; 32];
-               hmac.raw_result(&mut res);
-               res
+               Hmac::from_engine(hmac).into_inner()
        }
 
        #[inline]
        fn gen_ammag_from_shared_secret(shared_secret: &[u8]) -> [u8; 32] {
                assert_eq!(shared_secret.len(), 32);
-               let mut hmac = Hmac::new(Sha256::new(), &[0x61, 0x6d, 0x6d, 0x61, 0x67]); // ammag
+               let mut hmac = HmacEngine::<Sha256>::new(&[0x61, 0x6d, 0x6d, 0x61, 0x67]); // ammag
                hmac.input(&shared_secret[..]);
-               let mut res = [0; 32];
-               hmac.raw_result(&mut res);
-               res
+               Hmac::from_engine(hmac).into_inner()
        }
 
        // can only fail if an intermediary hop has an invalid public key or session_priv is invalid
@@ -705,11 +758,10 @@ impl ChannelManager {
                for hop in route.hops.iter() {
                        let shared_secret = SharedSecret::new(secp_ctx, &hop.pubkey, &blinded_priv);
 
-                       let mut sha = Sha256::new();
+                       let mut sha = Sha256::engine();
                        sha.input(&blinded_pub.serialize()[..]);
                        sha.input(&shared_secret[..]);
-                       let mut blinding_factor = [0u8; 32];
-                       sha.result(&mut blinding_factor);
+                       let blinding_factor = Sha256::from_engine(sha).into_inner();
 
                        let ephemeral_pubkey = blinded_pub;
 
@@ -800,7 +852,7 @@ impl ChannelManager {
        }
 
        const ZERO:[u8; 21*65] = [0; 21*65];
-       fn construct_onion_packet(mut payloads: Vec<msgs::OnionHopData>, onion_keys: Vec<OnionKeys>, associated_data: &[u8; 32]) -> msgs::OnionPacket {
+       fn construct_onion_packet(mut payloads: Vec<msgs::OnionHopData>, onion_keys: Vec<OnionKeys>, associated_data: &PaymentHash) -> msgs::OnionPacket {
                let mut buf = Vec::with_capacity(21*65);
                buf.resize(21*65, 0);
 
@@ -835,10 +887,10 @@ impl ChannelManager {
                                packet_data[20*65 - filler.len()..20*65].copy_from_slice(&filler[..]);
                        }
 
-                       let mut hmac = Hmac::new(Sha256::new(), &keys.mu);
+                       let mut hmac = HmacEngine::<Sha256>::new(&keys.mu);
                        hmac.input(&packet_data);
-                       hmac.input(&associated_data[..]);
-                       hmac.raw_result(&mut hmac_res);
+                       hmac.input(&associated_data.0[..]);
+                       hmac_res = Hmac::from_engine(hmac).into_inner();
                }
 
                msgs::OnionPacket{
@@ -887,9 +939,9 @@ impl ChannelManager {
                        pad: pad,
                };
 
-               let mut hmac = Hmac::new(Sha256::new(), &um);
+               let mut hmac = HmacEngine::<Sha256>::new(&um);
                hmac.input(&packet.encode()[32..]);
-               hmac.raw_result(&mut packet.hmac);
+               packet.hmac = Hmac::from_engine(hmac).into_inner();
 
                packet
        }
@@ -901,26 +953,22 @@ impl ChannelManager {
        }
 
        fn decode_update_add_htlc_onion(&self, msg: &msgs::UpdateAddHTLC) -> (PendingHTLCStatus, MutexGuard<ChannelHolder>) {
-               macro_rules! get_onion_hash {
-                       () => {
+               macro_rules! return_malformed_err {
+                       ($msg: expr, $err_code: expr) => {
                                {
-                                       let mut sha = Sha256::new();
-                                       sha.input(&msg.onion_routing_packet.hop_data);
-                                       let mut onion_hash = [0; 32];
-                                       sha.result(&mut onion_hash);
-                                       onion_hash
+                                       log_info!(self, "Failed to accept/forward incoming HTLC: {}", $msg);
+                                       return (PendingHTLCStatus::Fail(HTLCFailureMsg::Malformed(msgs::UpdateFailMalformedHTLC {
+                                               channel_id: msg.channel_id,
+                                               htlc_id: msg.htlc_id,
+                                               sha256_of_onion: Sha256::hash(&msg.onion_routing_packet.hop_data).into_inner(),
+                                               failure_code: $err_code,
+                                       })), self.channel_state.lock().unwrap());
                                }
                        }
                }
 
                if let Err(_) = msg.onion_routing_packet.public_key {
-                       log_info!(self, "Failed to accept/forward incoming HTLC with invalid ephemeral pubkey");
-                       return (PendingHTLCStatus::Fail(HTLCFailureMsg::Malformed(msgs::UpdateFailMalformedHTLC {
-                               channel_id: msg.channel_id,
-                               htlc_id: msg.htlc_id,
-                               sha256_of_onion: get_onion_hash!(),
-                               failure_code: 0x8000 | 0x4000 | 6,
-                       })), self.channel_state.lock().unwrap());
+                       return_malformed_err!("invalid ephemeral pubkey", 0x8000 | 0x4000 | 6);
                }
 
                let shared_secret = {
@@ -930,6 +978,24 @@ impl ChannelManager {
                };
                let (rho, mu) = ChannelManager::gen_rho_mu_from_shared_secret(&shared_secret);
 
+               if msg.onion_routing_packet.version != 0 {
+                       //TODO: Spec doesn't indicate if we should only hash hop_data here (and in other
+                       //sha256_of_onion error data packets), or the entire onion_routing_packet. Either way,
+                       //the hash doesn't really serve any purpuse - in the case of hashing all data, the
+                       //receiving node would have to brute force to figure out which version was put in the
+                       //packet by the node that send us the message, in the case of hashing the hop_data, the
+                       //node knows the HMAC matched, so they already know what is there...
+                       return_malformed_err!("Unknown onion packet version", 0x8000 | 0x4000 | 4);
+               }
+
+
+               let mut hmac = HmacEngine::<Sha256>::new(&mu);
+               hmac.input(&msg.onion_routing_packet.hop_data);
+               hmac.input(&msg.payment_hash.0[..]);
+               if !crypto::util::fixed_time_eq(&Hmac::from_engine(hmac).into_inner(), &msg.onion_routing_packet.hmac) {
+                       return_malformed_err!("HMAC Check failed", 0x8000 | 0x4000 | 5);
+               }
+
                let mut channel_state = None;
                macro_rules! return_err {
                        ($msg: expr, $err_code: expr, $data: expr) => {
@@ -947,23 +1013,6 @@ impl ChannelManager {
                        }
                }
 
-               if msg.onion_routing_packet.version != 0 {
-                       //TODO: Spec doesn't indicate if we should only hash hop_data here (and in other
-                       //sha256_of_onion error data packets), or the entire onion_routing_packet. Either way,
-                       //the hash doesn't really serve any purpuse - in the case of hashing all data, the
-                       //receiving node would have to brute force to figure out which version was put in the
-                       //packet by the node that send us the message, in the case of hashing the hop_data, the
-                       //node knows the HMAC matched, so they already know what is there...
-                       return_err!("Unknown onion packet version", 0x8000 | 0x4000 | 4, &get_onion_hash!());
-               }
-
-               let mut hmac = Hmac::new(Sha256::new(), &mu);
-               hmac.input(&msg.onion_routing_packet.hop_data);
-               hmac.input(&msg.payment_hash);
-               if hmac.result() != MacResult::new(&msg.onion_routing_packet.hmac) {
-                       return_err!("HMAC Check failed", 0x8000 | 0x4000 | 5, &get_onion_hash!());
-               }
-
                let mut chacha = ChaCha20::new(&rho, &[0u8; 8]);
                let next_hop_data = {
                        let mut decoded = [0; 65];
@@ -1016,26 +1065,19 @@ impl ChannelManager {
                                let mut new_pubkey = msg.onion_routing_packet.public_key.unwrap();
 
                                let blinding_factor = {
-                                       let mut sha = Sha256::new();
+                                       let mut sha = Sha256::engine();
                                        sha.input(&new_pubkey.serialize()[..]);
                                        sha.input(&shared_secret);
-                                       let mut res = [0u8; 32];
-                                       sha.result(&mut res);
-                                       match SecretKey::from_slice(&self.secp_ctx, &res) {
-                                               Err(_) => {
-                                                       return_err!("Blinding factor is an invalid private key", 0x8000 | 0x4000 | 6, &get_onion_hash!());
-                                               },
-                                               Ok(key) => key
-                                       }
+                                       SecretKey::from_slice(&self.secp_ctx, &Sha256::from_engine(sha).into_inner()).expect("SHA-256 is broken?")
                                };
 
-                               if let Err(_) = new_pubkey.mul_assign(&self.secp_ctx, &blinding_factor) {
-                                       return_err!("New blinding factor is an invalid private key", 0x8000 | 0x4000 | 6, &get_onion_hash!());
-                               }
+                               let public_key = if let Err(e) = new_pubkey.mul_assign(&self.secp_ctx, &blinding_factor) {
+                                       Err(e)
+                               } else { Ok(new_pubkey) };
 
                                let outgoing_packet = msgs::OnionPacket {
                                        version: 0,
-                                       public_key: Ok(new_pubkey),
+                                       public_key,
                                        hop_data: new_packet_data,
                                        hmac: next_hop_data.hmac.clone(),
                                };
@@ -1093,13 +1135,16 @@ impl ChannelManager {
                                }
                                {
                                        let mut res = Vec::with_capacity(8 + 128);
-                                       if code == 0x1000 | 11 || code == 0x1000 | 12 {
-                                               res.extend_from_slice(&byte_utils::be64_to_array(msg.amount_msat));
-                                       }
-                                       else if code == 0x1000 | 13 {
-                                               res.extend_from_slice(&byte_utils::be32_to_array(msg.cltv_expiry));
-                                       }
                                        if let Some(chan_update) = chan_update {
+                                               if code == 0x1000 | 11 || code == 0x1000 | 12 {
+                                                       res.extend_from_slice(&byte_utils::be64_to_array(msg.amount_msat));
+                                               }
+                                               else if code == 0x1000 | 13 {
+                                                       res.extend_from_slice(&byte_utils::be32_to_array(msg.cltv_expiry));
+                                               }
+                                               else if code == 0x1000 | 20 {
+                                                       res.extend_from_slice(&byte_utils::be16_to_array(chan_update.contents.flags));
+                                               }
                                                res.extend_from_slice(&chan_update.encode_with_len()[..]);
                                        }
                                        return_err!(err, code, &res[..]);
@@ -1156,8 +1201,18 @@ impl ChannelManager {
        /// May generate a SendHTLCs message event on success, which should be relayed.
        ///
        /// Raises APIError::RoutError when invalid route or forward parameter
-       /// (cltv_delta, fee, node public key) is specified
-       pub fn send_payment(&self, route: Route, payment_hash: [u8; 32]) -> Result<(), APIError> {
+       /// (cltv_delta, fee, node public key) is specified.
+       /// Raises APIError::ChannelUnavailable if the next-hop channel is not available for updates
+       /// (including due to previous monitor update failure or new permanent monitor update failure).
+       /// Raised APIError::MonitorUpdateFailed if a new monitor update failure prevented sending the
+       /// relevant updates.
+       ///
+       /// In case of APIError::RouteError/APIError::ChannelUnavailable, the payment send has failed
+       /// and you may wish to retry via a different route immediately.
+       /// In case of APIError::MonitorUpdateFailed, the commitment update has been irrevocably
+       /// committed on our end and we're just waiting for a monitor update to send it. Do NOT retry
+       /// the payment via a different route unless you intend to pay twice!
+       pub fn send_payment(&self, route: Route, payment_hash: PaymentHash) -> Result<(), APIError> {
                if route.hops.len() < 1 || route.hops.len() > 20 {
                        return Err(APIError::RouteError{err: "Route didn't go anywhere/had bogus size"});
                }
@@ -1168,11 +1223,7 @@ impl ChannelManager {
                        }
                }
 
-               let session_priv = SecretKey::from_slice(&self.secp_ctx, &{
-                       let mut session_key = [0; 32];
-                       rng::fill_bytes(&mut session_key);
-                       session_key
-               }).expect("RNG is bad!");
+               let session_priv = self.keys_manager.get_session_key();
 
                let cur_height = self.latest_block_height.load(Ordering::Acquire) as u32 + 1;
 
@@ -1182,57 +1233,80 @@ impl ChannelManager {
                let onion_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, &payment_hash);
 
                let _ = self.total_consistency_lock.read().unwrap();
-               let mut channel_state = self.channel_state.lock().unwrap();
 
-               let id = match channel_state.short_to_id.get(&route.hops.first().unwrap().short_channel_id) {
-                       None => return Err(APIError::ChannelUnavailable{err: "No channel available with first hop!"}),
-                       Some(id) => id.clone(),
-               };
+               let err: Result<(), _> = loop {
+                       let mut channel_lock = self.channel_state.lock().unwrap();
 
-               let res = {
-                       let chan = channel_state.by_id.get_mut(&id).unwrap();
-                       if chan.get_their_node_id() != route.hops.first().unwrap().pubkey {
-                               return Err(APIError::RouteError{err: "Node ID mismatch on first hop!"});
-                       }
-                       if chan.is_awaiting_monitor_update() {
-                               return Err(APIError::MonitorUpdateFailed);
-                       }
-                       if !chan.is_live() {
-                               return Err(APIError::ChannelUnavailable{err: "Peer for first hop currently disconnected!"});
-                       }
-                       chan.send_htlc_and_commit(htlc_msat, payment_hash.clone(), htlc_cltv, HTLCSource::OutboundRoute {
-                               route: route.clone(),
-                               session_priv: session_priv.clone(),
-                               first_hop_htlc_msat: htlc_msat,
-                       }, onion_packet).map_err(|he| APIError::ChannelUnavailable{err: he.err})?
-               };
-               match res {
-                       Some((update_add, commitment_signed, chan_monitor)) => {
-                               if let Err(e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
-                                       self.handle_monitor_update_fail(channel_state, &id, e, RAACommitmentOrder::CommitmentFirst);
-                                       return Err(APIError::MonitorUpdateFailed);
-                               }
+                       let id = match channel_lock.short_to_id.get(&route.hops.first().unwrap().short_channel_id) {
+                               None => return Err(APIError::ChannelUnavailable{err: "No channel available with first hop!"}),
+                               Some(id) => id.clone(),
+                       };
+
+                       let channel_state = channel_lock.borrow_parts();
+                       if let hash_map::Entry::Occupied(mut chan) = channel_state.by_id.entry(id) {
+                               match {
+                                       if chan.get().get_their_node_id() != route.hops.first().unwrap().pubkey {
+                                               return Err(APIError::RouteError{err: "Node ID mismatch on first hop!"});
+                                       }
+                                       if !chan.get().is_live() {
+                                               return Err(APIError::ChannelUnavailable{err: "Peer for first hop currently disconnected/pending monitor update!"});
+                                       }
+                                       break_chan_entry!(self, chan.get_mut().send_htlc_and_commit(htlc_msat, payment_hash.clone(), htlc_cltv, HTLCSource::OutboundRoute {
+                                               route: route.clone(),
+                                               session_priv: session_priv.clone(),
+                                               first_hop_htlc_msat: htlc_msat,
+                                       }, onion_packet), channel_state, chan)
+                               } {
+                                       Some((update_add, commitment_signed, chan_monitor)) => {
+                                               if let Err(e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                                       maybe_break_monitor_err!(self, e, channel_state, chan, RAACommitmentOrder::CommitmentFirst);
+                                                       // Note that MonitorUpdateFailed here indicates (per function docs)
+                                                       // that we will resent the commitment update once we unfree monitor
+                                                       // updating, so we have to take special care that we don't return
+                                                       // something else in case we will resend later!
+                                                       return Err(APIError::MonitorUpdateFailed);
+                                               }
 
-                               channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
-                                       node_id: route.hops.first().unwrap().pubkey,
-                                       updates: msgs::CommitmentUpdate {
-                                               update_add_htlcs: vec![update_add],
-                                               update_fulfill_htlcs: Vec::new(),
-                                               update_fail_htlcs: Vec::new(),
-                                               update_fail_malformed_htlcs: Vec::new(),
-                                               update_fee: None,
-                                               commitment_signed,
+                                               channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
+                                                       node_id: route.hops.first().unwrap().pubkey,
+                                                       updates: msgs::CommitmentUpdate {
+                                                               update_add_htlcs: vec![update_add],
+                                                               update_fulfill_htlcs: Vec::new(),
+                                                               update_fail_htlcs: Vec::new(),
+                                                               update_fail_malformed_htlcs: Vec::new(),
+                                                               update_fee: None,
+                                                               commitment_signed,
+                                                       },
+                                               });
                                        },
-                               });
+                                       None => {},
+                               }
+                       } else { unreachable!(); }
+                       return Ok(());
+               };
+
+               match handle_error!(self, err, route.hops.first().unwrap().pubkey) {
+                       Ok(_) => unreachable!(),
+                       Err(e) => {
+                               if let Some(msgs::ErrorAction::IgnoreError) = e.action {
+                               } else {
+                                       log_error!(self, "Got bad keys: {}!", e.err);
+                                       let mut channel_state = self.channel_state.lock().unwrap();
+                                       channel_state.pending_msg_events.push(events::MessageSendEvent::HandleError {
+                                               node_id: route.hops.first().unwrap().pubkey,
+                                               action: e.action,
+                                       });
+                               }
+                               Err(APIError::ChannelUnavailable { err: e.err })
                        },
-                       None => {},
                }
-
-               Ok(())
        }
 
        /// Call this upon creation of a funding transaction for the given channel.
        ///
+       /// Note that ALL inputs in the transaction pointed to by funding_txo MUST spend SegWit outputs
+       /// or your counterparty can steal your funds!
+       ///
        /// Panics if a funding transaction has already been provided for this channel.
        ///
        /// May panic if the funding_txo is duplicative with some other channel (note that this should
@@ -1241,24 +1315,32 @@ impl ChannelManager {
                let _ = self.total_consistency_lock.read().unwrap();
 
                let (chan, msg, chan_monitor) = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.remove(temporary_channel_id) {
-                               Some(mut chan) => {
-                                       match chan.get_outbound_funding_created(funding_txo) {
-                                               Ok(funding_msg) => {
-                                                       (chan, funding_msg.0, funding_msg.1)
-                                               },
-                                               Err(e) => {
-                                                       log_error!(self, "Got bad signatures: {}!", e.err);
-                                                       channel_state.pending_msg_events.push(events::MessageSendEvent::HandleError {
-                                                               node_id: chan.get_their_node_id(),
-                                                               action: e.action,
-                                                       });
-                                                       return;
-                                               },
-                                       }
+                       let (res, chan) = {
+                               let mut channel_state = self.channel_state.lock().unwrap();
+                               match channel_state.by_id.remove(temporary_channel_id) {
+                                       Some(mut chan) => {
+                                               (chan.get_outbound_funding_created(funding_txo)
+                                                       .map_err(|e| if let ChannelError::Close(msg) = e {
+                                                               MsgHandleErrInternal::from_finish_shutdown(msg, chan.channel_id(), chan.force_shutdown(), None)
+                                                       } else { unreachable!(); })
+                                               , chan)
+                                       },
+                                       None => return
+                               }
+                       };
+                       match handle_error!(self, res, chan.get_their_node_id()) {
+                               Ok(funding_msg) => {
+                                       (chan, funding_msg.0, funding_msg.1)
+                               },
+                               Err(e) => {
+                                       log_error!(self, "Got bad signatures: {}!", e.err);
+                                       let mut channel_state = self.channel_state.lock().unwrap();
+                                       channel_state.pending_msg_events.push(events::MessageSendEvent::HandleError {
+                                               node_id: chan.get_their_node_id(),
+                                               action: e.action,
+                                       });
+                                       return;
                                },
-                               None => return
                        }
                };
                // Because we have exclusive ownership of the channel here we can release the channel_state
@@ -1370,9 +1452,7 @@ impl ChannelManager {
                                                let (commitment_msg, monitor) = match forward_chan.send_commitment() {
                                                        Ok(res) => res,
                                                        Err(e) => {
-                                                               if let &Some(msgs::ErrorAction::DisconnectPeer{msg: Some(ref _err_msg)}) = &e.action {
-                                                               } else if let &Some(msgs::ErrorAction::SendErrorMessage{msg: ref _err_msg}) = &e.action {
-                                                               } else {
+                                                               if let ChannelError::Ignore(_) = e {
                                                                        panic!("Stated return value requirements in send_commitment() were not met");
                                                                }
                                                                //TODO: Handle...this is bad!
@@ -1380,7 +1460,7 @@ impl ChannelManager {
                                                        },
                                                };
                                                if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
-                                                       unimplemented!();// but def dont push the event...
+                                                       unimplemented!();
                                                }
                                                channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
                                                        node_id: forward_chan.get_their_node_id(),
@@ -1426,8 +1506,11 @@ impl ChannelManager {
                events.append(&mut new_events);
        }
 
-       /// Indicates that the preimage for payment_hash is unknown or the received amount is incorrect after a PaymentReceived event.
-       pub fn fail_htlc_backwards(&self, payment_hash: &[u8; 32], reason: PaymentFailReason) -> bool {
+       /// Indicates that the preimage for payment_hash is unknown or the received amount is incorrect
+       /// after a PaymentReceived event.
+       /// expected_value is the value you expected the payment to be for (not the amount it actually
+       /// was for from the PaymentReceived event).
+       pub fn fail_htlc_backwards(&self, payment_hash: &PaymentHash, expected_value: u64) -> bool {
                let _ = self.total_consistency_lock.read().unwrap();
 
                let mut channel_state = Some(self.channel_state.lock().unwrap());
@@ -1435,7 +1518,9 @@ impl ChannelManager {
                if let Some(mut sources) = removed_source {
                        for htlc_with_hash in sources.drain(..) {
                                if channel_state.is_none() { channel_state = Some(self.channel_state.lock().unwrap()); }
-                               self.fail_htlc_backwards_internal(channel_state.take().unwrap(), HTLCSource::PreviousHopData(htlc_with_hash), payment_hash, HTLCFailReason::Reason { failure_code: if reason == PaymentFailReason::PreimageUnknown {0x4000 | 15} else {0x4000 | 16}, data: Vec::new() });
+                               self.fail_htlc_backwards_internal(channel_state.take().unwrap(),
+                                               HTLCSource::PreviousHopData(htlc_with_hash), payment_hash,
+                                               HTLCFailReason::Reason { failure_code: 0x4000 | 15, data: byte_utils::be64_to_array(expected_value).to_vec() });
                        }
                        true
                } else { false }
@@ -1447,34 +1532,67 @@ impl ChannelManager {
        /// to fail and take the channel_state lock for each iteration (as we take ownership and may
        /// drop it). In other words, no assumptions are made that entries in claimable_htlcs point to
        /// still-available channels.
-       fn fail_htlc_backwards_internal(&self, mut channel_state_lock: MutexGuard<ChannelHolder>, source: HTLCSource, payment_hash: &[u8; 32], onion_error: HTLCFailReason) {
+       fn fail_htlc_backwards_internal(&self, mut channel_state_lock: MutexGuard<ChannelHolder>, source: HTLCSource, payment_hash: &PaymentHash, onion_error: HTLCFailReason) {
                match source {
-                       HTLCSource::OutboundRoute { .. } => {
+                       HTLCSource::OutboundRoute { ref route, .. } => {
+                               log_trace!(self, "Failing outbound payment HTLC with payment_hash {}", log_bytes!(payment_hash.0));
                                mem::drop(channel_state_lock);
-                               if let &HTLCFailReason::ErrorPacket { ref err } = &onion_error {
-                                       let (channel_update, payment_retryable) = self.process_onion_failure(&source, err.data.clone());
-                                       if let Some(update) = channel_update {
-                                               self.channel_state.lock().unwrap().pending_msg_events.push(
-                                                       events::MessageSendEvent::PaymentFailureNetworkUpdate {
-                                                               update,
+                               match &onion_error {
+                                       &HTLCFailReason::ErrorPacket { ref err } => {
+#[cfg(test)]
+                                               let (channel_update, payment_retryable, onion_error_code) = self.process_onion_failure(&source, err.data.clone());
+#[cfg(not(test))]
+                                               let (channel_update, payment_retryable, _) = self.process_onion_failure(&source, err.data.clone());
+                                               // TODO: If we decided to blame ourselves (or one of our channels) in
+                                               // process_onion_failure we should close that channel as it implies our
+                                               // next-hop is needlessly blaming us!
+                                               if let Some(update) = channel_update {
+                                                       self.channel_state.lock().unwrap().pending_msg_events.push(
+                                                               events::MessageSendEvent::PaymentFailureNetworkUpdate {
+                                                                       update,
+                                                               }
+                                                       );
+                                               }
+                                               self.pending_events.lock().unwrap().push(
+                                                       events::Event::PaymentFailed {
+                                                               payment_hash: payment_hash.clone(),
+                                                               rejected_by_dest: !payment_retryable,
+#[cfg(test)]
+                                                               error_code: onion_error_code
+                                                       }
+                                               );
+                                       },
+                                       &HTLCFailReason::Reason {
+#[cfg(test)]
+                                                       ref failure_code,
+                                                       .. } => {
+                                               // we get a fail_malformed_htlc from the first hop
+                                               // TODO: We'd like to generate a PaymentFailureNetworkUpdate for temporary
+                                               // failures here, but that would be insufficient as Router::get_route
+                                               // generally ignores its view of our own channels as we provide them via
+                                               // ChannelDetails.
+                                               // TODO: For non-temporary failures, we really should be closing the
+                                               // channel here as we apparently can't relay through them anyway.
+                                               self.pending_events.lock().unwrap().push(
+                                                       events::Event::PaymentFailed {
+                                                               payment_hash: payment_hash.clone(),
+                                                               rejected_by_dest: route.hops.len() == 1,
+#[cfg(test)]
+                                                               error_code: Some(*failure_code),
                                                        }
                                                );
                                        }
-                                       self.pending_events.lock().unwrap().push(events::Event::PaymentFailed {
-                                               payment_hash: payment_hash.clone(),
-                                               rejected_by_dest: !payment_retryable,
-                                       });
-                               } else {
-                                       panic!("should have onion error packet here");
                                }
                        },
                        HTLCSource::PreviousHopData(HTLCPreviousHopData { short_channel_id, htlc_id, incoming_packet_shared_secret }) => {
                                let err_packet = match onion_error {
                                        HTLCFailReason::Reason { failure_code, data } => {
+                                               log_trace!(self, "Failing HTLC with payment_hash {} backwards from us with code {}", log_bytes!(payment_hash.0), failure_code);
                                                let packet = ChannelManager::build_failure_packet(&incoming_packet_shared_secret, failure_code, &data[..]).encode();
                                                ChannelManager::encrypt_failure_packet(&incoming_packet_shared_secret, &packet)
                                        },
                                        HTLCFailReason::ErrorPacket { err } => {
+                                               log_trace!(self, "Failing HTLC with payment_hash {} backwards with pre-built ErrorPacket", log_bytes!(payment_hash.0));
                                                ChannelManager::encrypt_failure_packet(&incoming_packet_shared_secret, &err.data)
                                        }
                                };
@@ -1519,11 +1637,8 @@ impl ChannelManager {
        /// should probably kick the net layer to go send messages if this returns true!
        ///
        /// May panic if called except in response to a PaymentReceived event.
-       pub fn claim_funds(&self, payment_preimage: [u8; 32]) -> bool {
-               let mut sha = Sha256::new();
-               sha.input(&payment_preimage);
-               let mut payment_hash = [0; 32];
-               sha.result(&mut payment_hash);
+       pub fn claim_funds(&self, payment_preimage: PaymentPreimage) -> bool {
+               let payment_hash = PaymentHash(Sha256::hash(&payment_preimage.0).into_inner());
 
                let _ = self.total_consistency_lock.read().unwrap();
 
@@ -1537,7 +1652,7 @@ impl ChannelManager {
                        true
                } else { false }
        }
-       fn claim_funds_internal(&self, mut channel_state_lock: MutexGuard<ChannelHolder>, source: HTLCSource, payment_preimage: [u8; 32]) {
+       fn claim_funds_internal(&self, mut channel_state_lock: MutexGuard<ChannelHolder>, source: HTLCSource, payment_preimage: PaymentPreimage) {
                match source {
                        HTLCSource::OutboundRoute { .. } => {
                                mem::drop(channel_state_lock);
@@ -1618,6 +1733,13 @@ impl ChannelManager {
                                        if let Err(e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
                                                match e {
                                                        ChannelMonitorUpdateErr::PermanentFailure => {
+                                                               // TODO: There may be some pending HTLCs that we intended to fail
+                                                               // backwards when a monitor update failed. We should make sure
+                                                               // knowledge of those gets moved into the appropriate in-memory
+                                                               // ChannelMonitor and they get failed backwards once we get
+                                                               // on-chain confirmations.
+                                                               // Note I think #198 addresses this, so once its merged a test
+                                                               // should be written.
                                                                if let Some(short_id) = channel.get_short_channel_id() {
                                                                        short_to_id.remove(&short_id);
                                                                }
@@ -1704,19 +1826,19 @@ impl ChannelManager {
 
        fn internal_accept_channel(&self, their_node_id: &PublicKey, msg: &msgs::AcceptChannel) -> Result<(), MsgHandleErrInternal> {
                let (value, output_script, user_id) = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.get_mut(&msg.temporary_channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
+                       let mut channel_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_lock.borrow_parts();
+                       match channel_state.by_id.entry(msg.temporary_channel_id) {
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if chan.get().get_their_node_id() != *their_node_id {
                                                //TODO: see issue #153, need a consistent behavior on obnoxious behavior from random node
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.temporary_channel_id));
                                        }
-                                       chan.accept_channel(&msg, &self.default_configuration)
-                                               .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.temporary_channel_id))?;
-                                       (chan.get_value_satoshis(), chan.get_funding_redeemscript().to_v0_p2wsh(), chan.get_user_id())
+                                       try_chan_entry!(self, chan.get_mut().accept_channel(&msg, &self.default_configuration), channel_state, chan);
+                                       (chan.get().get_value_satoshis(), chan.get().get_funding_redeemscript().to_v0_p2wsh(), chan.get().get_user_id())
                                },
                                //TODO: same as above
-                               None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.temporary_channel_id))
+                               hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.temporary_channel_id))
                        }
                };
                let mut pending_events = self.pending_events.lock().unwrap();
@@ -1730,22 +1852,16 @@ impl ChannelManager {
        }
 
        fn internal_funding_created(&self, their_node_id: &PublicKey, msg: &msgs::FundingCreated) -> Result<(), MsgHandleErrInternal> {
-               let (chan, funding_msg, monitor_update) = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
+               let ((funding_msg, monitor_update), chan) = {
+                       let mut channel_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_lock.borrow_parts();
                        match channel_state.by_id.entry(msg.temporary_channel_id.clone()) {
                                hash_map::Entry::Occupied(mut chan) => {
                                        if chan.get().get_their_node_id() != *their_node_id {
                                                //TODO: here and below MsgHandleErrInternal, #153 case
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.temporary_channel_id));
                                        }
-                                       match chan.get_mut().funding_created(msg) {
-                                               Ok((funding_msg, monitor_update)) => {
-                                                       (chan.remove(), funding_msg, monitor_update)
-                                               },
-                                               Err(e) => {
-                                                       return Err(e).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))
-                                               }
-                                       }
+                                       (try_chan_entry!(self, chan.get_mut().funding_created(msg), channel_state, chan), chan.remove())
                                },
                                hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.temporary_channel_id))
                        }
@@ -1774,20 +1890,21 @@ impl ChannelManager {
 
        fn internal_funding_signed(&self, their_node_id: &PublicKey, msg: &msgs::FundingSigned) -> Result<(), MsgHandleErrInternal> {
                let (funding_txo, user_id) = {
-                       let mut channel_state = self.channel_state.lock().unwrap();
-                       match channel_state.by_id.get_mut(&msg.channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
+                       let mut channel_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_lock.borrow_parts();
+                       match channel_state.by_id.entry(msg.channel_id) {
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if chan.get().get_their_node_id() != *their_node_id {
                                                //TODO: here and below MsgHandleErrInternal, #153 case
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                        }
-                                       let chan_monitor = chan.funding_signed(&msg).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
+                                       let chan_monitor = try_chan_entry!(self, chan.get_mut().funding_signed(&msg), channel_state, chan);
                                        if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
                                                unimplemented!();
                                        }
-                                       (chan.get_funding_txo().unwrap(), chan.get_user_id())
+                                       (chan.get().get_funding_txo().unwrap(), chan.get().get_user_id())
                                },
-                               None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                               hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                        }
                };
                let mut pending_events = self.pending_events.lock().unwrap();
@@ -1801,15 +1918,14 @@ impl ChannelManager {
        fn internal_funding_locked(&self, their_node_id: &PublicKey, msg: &msgs::FundingLocked) -> Result<(), MsgHandleErrInternal> {
                let mut channel_state_lock = self.channel_state.lock().unwrap();
                let channel_state = channel_state_lock.borrow_parts();
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here and below MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               chan.funding_locked(&msg)
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))?;
-                               if let Some(announcement_sigs) = self.get_announcement_sigs(chan) {
+                               try_chan_entry!(self, chan.get_mut().funding_locked(&msg), channel_state, chan);
+                               if let Some(announcement_sigs) = self.get_announcement_sigs(chan.get()) {
                                        channel_state.pending_msg_events.push(events::MessageSendEvent::SendAnnouncementSignatures {
                                                node_id: their_node_id.clone(),
                                                msg: announcement_sigs,
@@ -1817,7 +1933,7 @@ impl ChannelManager {
                                }
                                Ok(())
                        },
-                       None => Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
        }
 
@@ -1832,7 +1948,7 @@ impl ChannelManager {
                                                //TODO: here and below MsgHandleErrInternal, #153 case
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                        }
-                                       let (shutdown, closing_signed, dropped_htlcs) = chan_entry.get_mut().shutdown(&*self.fee_estimator, &msg).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
+                                       let (shutdown, closing_signed, dropped_htlcs) = try_chan_entry!(self, chan_entry.get_mut().shutdown(&*self.fee_estimator, &msg), channel_state, chan_entry);
                                        if let Some(msg) = shutdown {
                                                channel_state.pending_msg_events.push(events::MessageSendEvent::SendShutdown {
                                                        node_id: their_node_id.clone(),
@@ -1856,8 +1972,7 @@ impl ChannelManager {
                        }
                };
                for htlc_source in dropped_htlcs.drain(..) {
-                       // unknown_next_peer...I dunno who that is anymore....
-                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 10, data: Vec::new() });
+                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_source.0, &htlc_source.1, HTLCFailReason::Reason { failure_code: 0x4000 | 8, data: Vec::new() });
                }
                if let Some(chan) = chan_option {
                        if let Ok(update) = self.get_channel_update(&chan) {
@@ -1880,7 +1995,7 @@ impl ChannelManager {
                                                //TODO: here and below MsgHandleErrInternal, #153 case
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                        }
-                                       let (closing_signed, tx) = chan_entry.get_mut().closing_signed(&*self.fee_estimator, &msg).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
+                                       let (closing_signed, tx) = try_chan_entry!(self, chan_entry.get_mut().closing_signed(&*self.fee_estimator, &msg), channel_state, chan_entry);
                                        if let Some(msg) = closing_signed {
                                                channel_state.pending_msg_events.push(events::MessageSendEvent::SendClosingSigned {
                                                        node_id: their_node_id.clone(),
@@ -1926,66 +2041,89 @@ impl ChannelManager {
                //encrypted with the same key. Its not immediately obvious how to usefully exploit that,
                //but we should prevent it anyway.
 
-               let (pending_forward_info, mut channel_state_lock) = self.decode_update_add_htlc_onion(msg);
+               let (mut pending_forward_info, mut channel_state_lock) = self.decode_update_add_htlc_onion(msg);
                let channel_state = channel_state_lock.borrow_parts();
 
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               if !chan.is_usable() {
-                                       return Err(MsgHandleErrInternal::from_no_close(HandleError{err: "Channel not yet available for receiving HTLCs", action: Some(msgs::ErrorAction::IgnoreError)}));
+                               if !chan.get().is_usable() {
+                                       // If the update_add is completely bogus, the call will Err and we will close,
+                                       // but if we've sent a shutdown and they haven't acknowledged it yet, we just
+                                       // want to reject the new HTLC and fail it backwards instead of forwarding.
+                                       if let PendingHTLCStatus::Forward(PendingForwardHTLCInfo { incoming_shared_secret, .. }) = pending_forward_info {
+                                               let chan_update = self.get_channel_update(chan.get());
+                                               pending_forward_info = PendingHTLCStatus::Fail(HTLCFailureMsg::Relay(msgs::UpdateFailHTLC {
+                                                       channel_id: msg.channel_id,
+                                                       htlc_id: msg.htlc_id,
+                                                       reason: if let Ok(update) = chan_update {
+                                                               // TODO: Note that |20 is defined as "channel FROM the processing
+                                                               // node has been disabled" (emphasis mine), which seems to imply
+                                                               // that we can't return |20 for an inbound channel being disabled.
+                                                               // This probably needs a spec update but should definitely be
+                                                               // allowed.
+                                                               ChannelManager::build_first_hop_failure_packet(&incoming_shared_secret, 0x1000|20, &{
+                                                                       let mut res = Vec::with_capacity(8 + 128);
+                                                                       res.extend_from_slice(&byte_utils::be16_to_array(update.contents.flags));
+                                                                       res.extend_from_slice(&update.encode_with_len()[..]);
+                                                                       res
+                                                               }[..])
+                                                       } else {
+                                                               // This can only happen if the channel isn't in the fully-funded
+                                                               // state yet, implying our counterparty is trying to route payments
+                                                               // over the channel back to themselves (cause no one else should
+                                                               // know the short_id is a lightning channel yet). We should have no
+                                                               // problem just calling this unknown_next_peer
+                                                               ChannelManager::build_first_hop_failure_packet(&incoming_shared_secret, 0x4000|10, &[])
+                                                       },
+                                               }));
+                                       }
                                }
-                               chan.update_add_htlc(&msg, pending_forward_info).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))
+                               try_chan_entry!(self, chan.get_mut().update_add_htlc(&msg, pending_forward_info), channel_state, chan);
                        },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
+               Ok(())
        }
 
        fn internal_update_fulfill_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFulfillHTLC) -> Result<(), MsgHandleErrInternal> {
-               let mut channel_state = self.channel_state.lock().unwrap();
-               let htlc_source = match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
-                                       //TODO: here and below MsgHandleErrInternal, #153 case
-                                       return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
-                               }
-                               chan.update_fulfill_htlc(&msg)
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))?.clone()
-                       },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+               let mut channel_lock = self.channel_state.lock().unwrap();
+               let htlc_source = {
+                       let channel_state = channel_lock.borrow_parts();
+                       match channel_state.by_id.entry(msg.channel_id) {
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if chan.get().get_their_node_id() != *their_node_id {
+                                               //TODO: here and below MsgHandleErrInternal, #153 case
+                                               return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
+                                       }
+                                       try_chan_entry!(self, chan.get_mut().update_fulfill_htlc(&msg), channel_state, chan)
+                               },
+                               hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       }
                };
-               self.claim_funds_internal(channel_state, htlc_source, msg.payment_preimage.clone());
+               self.claim_funds_internal(channel_lock, htlc_source, msg.payment_preimage.clone());
                Ok(())
        }
 
        // Process failure we got back from upstream on a payment we sent. Returns update and a boolean
        // indicating that the payment itself failed
-       fn process_onion_failure(&self, htlc_source: &HTLCSource, mut packet_decrypted: Vec<u8>) -> (Option<msgs::HTLCFailChannelUpdate>, bool) {
+       fn process_onion_failure(&self, htlc_source: &HTLCSource, mut packet_decrypted: Vec<u8>) -> (Option<msgs::HTLCFailChannelUpdate>, bool, Option<u16>) {
                if let &HTLCSource::OutboundRoute { ref route, ref session_priv, ref first_hop_htlc_msat } = htlc_source {
-                       macro_rules! onion_failure_log {
-                               ( $error_code_textual: expr, $error_code: expr, $reported_name: expr, $reported_value: expr ) => {
-                                       log_trace!(self, "{}({:#x}) {}({})", $error_code_textual, $error_code, $reported_name, $reported_value);
-                               };
-                               ( $error_code_textual: expr, $error_code: expr ) => {
-                                       log_trace!(self, "{}({})", $error_code_textual, $error_code);
-                               };
-                       }
-
-                       const BADONION: u16 = 0x8000;
-                       const PERM: u16 = 0x4000;
-                       const UPDATE: u16 = 0x1000;
 
                        let mut res = None;
                        let mut htlc_msat = *first_hop_htlc_msat;
+                       let mut error_code_ret = None;
+                       let mut next_route_hop_ix = 0;
+                       let mut is_from_final_node = false;
 
                        // Handle packed channel/node updates for passing back for the route handler
                        Self::construct_onion_keys_callback(&self.secp_ctx, route, session_priv, |shared_secret, _, _, route_hop| {
+                               next_route_hop_ix += 1;
                                if res.is_some() { return; }
 
-                               let incoming_htlc_msat = htlc_msat;
                                let amt_to_forward = htlc_msat - route_hop.fee_msat;
                                htlc_msat = amt_to_forward;
 
@@ -1997,214 +2135,177 @@ impl ChannelManager {
                                chacha.process(&packet_decrypted, &mut decryption_tmp[..]);
                                packet_decrypted = decryption_tmp;
 
-                               let is_from_final_node = route.hops.last().unwrap().pubkey == route_hop.pubkey;
+                               is_from_final_node = route.hops.last().unwrap().pubkey == route_hop.pubkey;
 
                                if let Ok(err_packet) = msgs::DecodedOnionErrorPacket::read(&mut Cursor::new(&packet_decrypted)) {
                                        let um = ChannelManager::gen_um_from_shared_secret(&shared_secret[..]);
-                                       let mut hmac = Hmac::new(Sha256::new(), &um);
+                                       let mut hmac = HmacEngine::<Sha256>::new(&um);
                                        hmac.input(&err_packet.encode()[32..]);
-                                       let mut calc_tag = [0u8; 32];
-                                       hmac.raw_result(&mut calc_tag);
 
-                                       if crypto::util::fixed_time_eq(&calc_tag, &err_packet.hmac) {
-                                               if err_packet.failuremsg.len() < 2 {
-                                                       // Useless packet that we can't use but it passed HMAC, so it
-                                                       // definitely came from the peer in question
-                                                       res = Some((None, !is_from_final_node));
-                                               } else {
-                                                       let error_code = byte_utils::slice_to_be16(&err_packet.failuremsg[0..2]);
-
-                                                       match error_code & 0xff {
-                                                               1|2|3 => {
-                                                                       // either from an intermediate or final node
-                                                                       //   invalid_realm(PERM|1),
-                                                                       //   temporary_node_failure(NODE|2)
-                                                                       //   permanent_node_failure(PERM|NODE|2)
-                                                                       //   required_node_feature_mssing(PERM|NODE|3)
-                                                                       res = Some((Some(msgs::HTLCFailChannelUpdate::NodeFailure {
-                                                                               node_id: route_hop.pubkey,
-                                                                               is_permanent: error_code & PERM == PERM,
-                                                                       }), !(error_code & PERM == PERM && is_from_final_node)));
-                                                                       // node returning invalid_realm is removed from network_map,
-                                                                       // although NODE flag is not set, TODO: or remove channel only?
-                                                                       // retry payment when removed node is not a final node
-                                                                       return;
-                                                               },
-                                                               _ => {}
-                                                       }
+                                       if crypto::util::fixed_time_eq(&Hmac::from_engine(hmac).into_inner(), &err_packet.hmac) {
+                                               if let Some(error_code_slice) = err_packet.failuremsg.get(0..2) {
+                                                       const PERM: u16 = 0x4000;
+                                                       const NODE: u16 = 0x2000;
+                                                       const UPDATE: u16 = 0x1000;
 
-                                                       if is_from_final_node {
-                                                               let payment_retryable = match error_code {
-                                                                       c if c == PERM|15 => false, // unknown_payment_hash
-                                                                       c if c == PERM|16 => false, // incorrect_payment_amount
-                                                                       17 => true, // final_expiry_too_soon
-                                                                       18 if err_packet.failuremsg.len() == 6 => { // final_incorrect_cltv_expiry
-                                                                               let _reported_cltv_expiry = byte_utils::slice_to_be32(&err_packet.failuremsg[2..2+4]);
-                                                                               true
-                                                                       },
-                                                                       19 if err_packet.failuremsg.len() == 10 => { // final_incorrect_htlc_amount
-                                                                               let _reported_incoming_htlc_msat = byte_utils::slice_to_be64(&err_packet.failuremsg[2..2+8]);
-                                                                               true
-                                                                       },
-                                                                       _ => {
-                                                                               // A final node has sent us either an invalid code or an error_code that
-                                                                               // MUST be sent from the processing node, or the formmat of failuremsg
-                                                                               // does not coform to the spec.
-                                                                               // Remove it from the network map and don't may retry payment
-                                                                               res = Some((Some(msgs::HTLCFailChannelUpdate::NodeFailure {
-                                                                                       node_id: route_hop.pubkey,
-                                                                                       is_permanent: true,
-                                                                               }), false));
-                                                                               return;
-                                                                       }
-                                                               };
-                                                               res = Some((None, payment_retryable));
-                                                               return;
-                                                       }
+                                                       let error_code = byte_utils::slice_to_be16(&error_code_slice);
+                                                       error_code_ret = Some(error_code);
 
-                                                       // now, error_code should be only from the intermediate nodes
-                                                       match error_code {
-                                                               _c if error_code & PERM == PERM => {
-                                                                       res = Some((Some(msgs::HTLCFailChannelUpdate::ChannelClosed {
-                                                                               short_channel_id: route_hop.short_channel_id,
-                                                                               is_permanent: true,
-                                                                       }), false));
-                                                               },
-                                                               _c if error_code & UPDATE == UPDATE => {
-                                                                       let offset = match error_code {
-                                                                               c if c == UPDATE|7  => 0, // temporary_channel_failure
-                                                                               c if c == UPDATE|11 => 8, // amount_below_minimum
-                                                                               c if c == UPDATE|12 => 8, // fee_insufficient
-                                                                               c if c == UPDATE|13 => 4, // incorrect_cltv_expiry
-                                                                               c if c == UPDATE|14 => 0, // expiry_too_soon
-                                                                               c if c == UPDATE|20 => 2, // channel_disabled
-                                                                               _ =>  {
-                                                                                       // node sending unknown code
-                                                                                       res = Some((Some(msgs::HTLCFailChannelUpdate::NodeFailure {
-                                                                                               node_id: route_hop.pubkey,
-                                                                                               is_permanent: true,
-                                                                                       }), false));
-                                                                                       return;
-                                                                               }
-                                                                       };
-
-                                                                       if err_packet.failuremsg.len() >= offset + 2 {
-                                                                               let update_len = byte_utils::slice_to_be16(&err_packet.failuremsg[offset+2..offset+4]) as usize;
-                                                                               if err_packet.failuremsg.len() >= offset + 4 + update_len {
-                                                                                       if let Ok(chan_update) = msgs::ChannelUpdate::read(&mut Cursor::new(&err_packet.failuremsg[offset + 4..offset + 4 + update_len])) {
-                                                                                               // if channel_update should NOT have caused the failure:
-                                                                                               // MAY treat the channel_update as invalid.
-                                                                                               let is_chan_update_invalid = match error_code {
-                                                                                                       c if c == UPDATE|7 => { // temporary_channel_failure
-                                                                                                               false
-                                                                                                       },
-                                                                                                       c if c == UPDATE|11 => { // amount_below_minimum
-                                                                                                               let reported_htlc_msat = byte_utils::slice_to_be64(&err_packet.failuremsg[2..2+8]);
-                                                                                                               onion_failure_log!("amount_below_minimum", UPDATE|11, "htlc_msat", reported_htlc_msat);
-                                                                                                               incoming_htlc_msat > chan_update.contents.htlc_minimum_msat
-                                                                                                       },
-                                                                                                       c if c == UPDATE|12 => { // fee_insufficient
-                                                                                                               let reported_htlc_msat = byte_utils::slice_to_be64(&err_packet.failuremsg[2..2+8]);
-                                                                                                               let new_fee =  amt_to_forward.checked_mul(chan_update.contents.fee_proportional_millionths as u64).and_then(|prop_fee| { (prop_fee / 1000000).checked_add(chan_update.contents.fee_base_msat as u64) });
-                                                                                                               onion_failure_log!("fee_insufficient", UPDATE|12, "htlc_msat", reported_htlc_msat);
-                                                                                                               new_fee.is_none() || incoming_htlc_msat >= new_fee.unwrap() && incoming_htlc_msat >= amt_to_forward + new_fee.unwrap()
-                                                                                                       }
-                                                                                                       c if c == UPDATE|13 => { // incorrect_cltv_expiry
-                                                                                                               let reported_cltv_expiry = byte_utils::slice_to_be32(&err_packet.failuremsg[2..2+4]);
-                                                                                                               onion_failure_log!("incorrect_cltv_expiry", UPDATE|13, "cltv_expiry", reported_cltv_expiry);
-                                                                                                               route_hop.cltv_expiry_delta as u16 >= chan_update.contents.cltv_expiry_delta
-                                                                                                       },
-                                                                                                       c if c == UPDATE|20 => { // channel_disabled
-                                                                                                               let reported_flags = byte_utils::slice_to_be16(&err_packet.failuremsg[2..2+2]);
-                                                                                                               onion_failure_log!("channel_disabled", UPDATE|20, "flags", reported_flags);
-                                                                                                               chan_update.contents.flags & 0x01 == 0x01
-                                                                                                       },
-                                                                                                       c if c == UPDATE|21 => true, // expiry_too_far
-                                                                                                       _ => { unreachable!(); },
-                                                                                               };
-
-                                                                                               let msg = if is_chan_update_invalid { None } else {
-                                                                                                       Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage {
-                                                                                                               msg: chan_update,
-                                                                                                       })
-                                                                                               };
-                                                                                               res = Some((msg, true));
-                                                                                               return;
-                                                                                       }
+                                                       let (debug_field, debug_field_size) = errors::get_onion_debug_field(error_code);
+
+                                                       // indicate that payment parameter has failed and no need to
+                                                       // update Route object
+                                                       let payment_failed = (match error_code & 0xff {
+                                                               15|16|17|18|19 => true,
+                                                               _ => false,
+                                                       } && is_from_final_node) // PERM bit observed below even this error is from the intermediate nodes
+                                                       || error_code == 21; // Special case error 21 as the Route object is bogus, TODO: Maybe fail the node if the CLTV was reasonable?
+
+                                                       let mut fail_channel_update = None;
+
+                                                       if error_code & NODE == NODE {
+                                                               fail_channel_update = Some(msgs::HTLCFailChannelUpdate::NodeFailure { node_id: route_hop.pubkey, is_permanent: error_code & PERM == PERM });
+                                                       }
+                                                       else if error_code & PERM == PERM {
+                                                               fail_channel_update = if payment_failed {None} else {Some(msgs::HTLCFailChannelUpdate::ChannelClosed {
+                                                                       short_channel_id: route.hops[next_route_hop_ix - if next_route_hop_ix == route.hops.len() { 1 } else { 0 }].short_channel_id,
+                                                                       is_permanent: true,
+                                                               })};
+                                                       }
+                                                       else if error_code & UPDATE == UPDATE {
+                                                               if let Some(update_len_slice) = err_packet.failuremsg.get(debug_field_size+2..debug_field_size+4) {
+                                                                       let update_len = byte_utils::slice_to_be16(&update_len_slice) as usize;
+                                                                       if let Some(update_slice) = err_packet.failuremsg.get(debug_field_size + 4..debug_field_size + 4 + update_len) {
+                                                                               if let Ok(chan_update) = msgs::ChannelUpdate::read(&mut Cursor::new(&update_slice)) {
+                                                                                       // if channel_update should NOT have caused the failure:
+                                                                                       // MAY treat the channel_update as invalid.
+                                                                                       let is_chan_update_invalid = match error_code & 0xff {
+                                                                                               7 => false,
+                                                                                               11 => amt_to_forward > chan_update.contents.htlc_minimum_msat,
+                                                                                               12 => {
+                                                                                                       let new_fee = amt_to_forward.checked_mul(chan_update.contents.fee_proportional_millionths as u64).and_then(|prop_fee| { (prop_fee / 1000000).checked_add(chan_update.contents.fee_base_msat as u64) });
+                                                                                                       new_fee.is_some() && route_hop.fee_msat >= new_fee.unwrap()
+                                                                                               }
+                                                                                               13 => route_hop.cltv_expiry_delta as u16 >= chan_update.contents.cltv_expiry_delta,
+                                                                                               14 => false, // expiry_too_soon; always valid?
+                                                                                               20 => chan_update.contents.flags & 2 == 0,
+                                                                                               _ => false, // unknown error code; take channel_update as valid
+                                                                                       };
+                                                                                       fail_channel_update = if is_chan_update_invalid {
+                                                                                               // This probably indicates the node which forwarded
+                                                                                               // to the node in question corrupted something.
+                                                                                               Some(msgs::HTLCFailChannelUpdate::ChannelClosed {
+                                                                                                       short_channel_id: route_hop.short_channel_id,
+                                                                                                       is_permanent: true,
+                                                                                               })
+                                                                                       } else {
+                                                                                               Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage {
+                                                                                                       msg: chan_update,
+                                                                                               })
+                                                                                       };
                                                                                }
                                                                        }
-                                                               },
-                                                               _c if error_code & BADONION == BADONION => {
-                                                                       //TODO
-                                                               },
-                                                               14 => { // expiry_too_soon
-                                                                       res = Some((None, true));
-                                                                       return;
                                                                }
-                                                               _ => {
-                                                                       // node sending unknown code
-                                                                       res = Some((Some(msgs::HTLCFailChannelUpdate::NodeFailure {
+                                                               if fail_channel_update.is_none() {
+                                                                       // They provided an UPDATE which was obviously bogus, not worth
+                                                                       // trying to relay through them anymore.
+                                                                       fail_channel_update = Some(msgs::HTLCFailChannelUpdate::NodeFailure {
                                                                                node_id: route_hop.pubkey,
                                                                                is_permanent: true,
-                                                                       }), false));
-                                                                       return;
+                                                                       });
                                                                }
+                                                       } else if !payment_failed {
+                                                               // We can't understand their error messages and they failed to
+                                                               // forward...they probably can't understand our forwards so its
+                                                               // really not worth trying any further.
+                                                               fail_channel_update = Some(msgs::HTLCFailChannelUpdate::NodeFailure {
+                                                                       node_id: route_hop.pubkey,
+                                                                       is_permanent: true,
+                                                               });
+                                                       }
+
+                                                       // TODO: Here (and a few other places) we assume that BADONION errors
+                                                       // are always "sourced" from the node previous to the one which failed
+                                                       // to decode the onion.
+                                                       res = Some((fail_channel_update, !(error_code & PERM == PERM && is_from_final_node)));
+
+                                                       let (description, title) = errors::get_onion_error_description(error_code);
+                                                       if debug_field_size > 0 && err_packet.failuremsg.len() >= 4 + debug_field_size {
+                                                               log_warn!(self, "Onion Error[{}({:#x}) {}({})] {}", title, error_code, debug_field, log_bytes!(&err_packet.failuremsg[4..4+debug_field_size]), description);
+                                                       }
+                                                       else {
+                                                               log_warn!(self, "Onion Error[{}({:#x})] {}", title, error_code, description);
                                                        }
+                                               } else {
+                                                       // Useless packet that we can't use but it passed HMAC, so it
+                                                       // definitely came from the peer in question
+                                                       res = Some((Some(msgs::HTLCFailChannelUpdate::NodeFailure {
+                                                               node_id: route_hop.pubkey,
+                                                               is_permanent: true,
+                                                       }), !is_from_final_node));
                                                }
                                        }
                                }
                        }).expect("Route that we sent via spontaneously grew invalid keys in the middle of it?");
-                       res.unwrap_or((None, true))
-               } else { ((None, true)) }
+                       if let Some((channel_update, payment_retryable)) = res {
+                               (channel_update, payment_retryable, error_code_ret)
+                       } else {
+                               // only not set either packet unparseable or hmac does not match with any
+                               // payment not retryable only when garbage is from the final node
+                               (None, !is_from_final_node, None)
+                       }
+               } else { unreachable!(); }
        }
 
        fn internal_update_fail_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailHTLC) -> Result<(), MsgHandleErrInternal> {
-               let mut channel_state = self.channel_state.lock().unwrap();
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               let mut channel_lock = self.channel_state.lock().unwrap();
+               let channel_state = channel_lock.borrow_parts();
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here and below MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               chan.update_fail_htlc(&msg, HTLCFailReason::ErrorPacket { err: msg.reason.clone() })
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))
+                               try_chan_entry!(self, chan.get_mut().update_fail_htlc(&msg, HTLCFailReason::ErrorPacket { err: msg.reason.clone() }), channel_state, chan);
                        },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
-               }?;
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+               }
                Ok(())
        }
 
        fn internal_update_fail_malformed_htlc(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFailMalformedHTLC) -> Result<(), MsgHandleErrInternal> {
-               let mut channel_state = self.channel_state.lock().unwrap();
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               let mut channel_lock = self.channel_state.lock().unwrap();
+               let channel_state = channel_lock.borrow_parts();
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here and below MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               if (msg.failure_code & 0x8000) != 0 {
-                                       return Err(MsgHandleErrInternal::send_err_msg_close_chan("Got update_fail_malformed_htlc with BADONION set", msg.channel_id));
+                               if (msg.failure_code & 0x8000) == 0 {
+                                       try_chan_entry!(self, Err(ChannelError::Close("Got update_fail_malformed_htlc with BADONION not set")), channel_state, chan);
                                }
-                               chan.update_fail_malformed_htlc(&msg, HTLCFailReason::Reason { failure_code: msg.failure_code, data: Vec::new() })
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))?;
+                               try_chan_entry!(self, chan.get_mut().update_fail_malformed_htlc(&msg, HTLCFailReason::Reason { failure_code: msg.failure_code, data: Vec::new() }), channel_state, chan);
                                Ok(())
                        },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
        }
 
        fn internal_commitment_signed(&self, their_node_id: &PublicKey, msg: &msgs::CommitmentSigned) -> Result<(), MsgHandleErrInternal> {
                let mut channel_state_lock = self.channel_state.lock().unwrap();
                let channel_state = channel_state_lock.borrow_parts();
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here and below MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               let (revoke_and_ack, commitment_signed, chan_monitor) = chan.commitment_signed(&msg).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
-                               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
-                                       unimplemented!();
+                               let (revoke_and_ack, commitment_signed, closing_signed, chan_monitor) =
+                                       try_chan_entry!(self, chan.get_mut().commitment_signed(&msg, &*self.fee_estimator), channel_state, chan);
+                               if let Err(e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                       return_monitor_err!(self, e, channel_state, chan, RAACommitmentOrder::RevokeAndACKFirst, commitment_signed.is_some());
+                                       //TODO: Rebroadcast closing_signed if present on monitor update restoration
                                }
                                channel_state.pending_msg_events.push(events::MessageSendEvent::SendRevokeAndACK {
                                        node_id: their_node_id.clone(),
@@ -2223,9 +2324,15 @@ impl ChannelManager {
                                                },
                                        });
                                }
+                               if let Some(msg) = closing_signed {
+                                       channel_state.pending_msg_events.push(events::MessageSendEvent::SendClosingSigned {
+                                               node_id: their_node_id.clone(),
+                                               msg,
+                                       });
+                               }
                                Ok(())
                        },
-                       None => Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
        }
 
@@ -2266,15 +2373,16 @@ impl ChannelManager {
                let (pending_forwards, mut pending_failures, short_channel_id) = {
                        let mut channel_state_lock = self.channel_state.lock().unwrap();
                        let channel_state = channel_state_lock.borrow_parts();
-                       match channel_state.by_id.get_mut(&msg.channel_id) {
-                               Some(chan) => {
-                                       if chan.get_their_node_id() != *their_node_id {
+                       match channel_state.by_id.entry(msg.channel_id) {
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if chan.get().get_their_node_id() != *their_node_id {
                                                //TODO: here and below MsgHandleErrInternal, #153 case
                                                return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                        }
-                                       let (commitment_update, pending_forwards, pending_failures, chan_monitor) = chan.revoke_and_ack(&msg).map_err(|e| MsgHandleErrInternal::from_maybe_close(e))?;
-                                       if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
-                                               unimplemented!();
+                                       let (commitment_update, pending_forwards, pending_failures, closing_signed, chan_monitor) =
+                                               try_chan_entry!(self, chan.get_mut().revoke_and_ack(&msg, &*self.fee_estimator), channel_state, chan);
+                                       if let Err(e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                               return_monitor_err!(self, e, channel_state, chan, RAACommitmentOrder::CommitmentFirst, pending_forwards, pending_failures);
                                        }
                                        if let Some(updates) = commitment_update {
                                                channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
@@ -2282,9 +2390,15 @@ impl ChannelManager {
                                                        updates,
                                                });
                                        }
-                                       (pending_forwards, pending_failures, chan.get_short_channel_id().expect("RAA should only work on a short-id-available channel"))
+                                       if let Some(msg) = closing_signed {
+                                               channel_state.pending_msg_events.push(events::MessageSendEvent::SendClosingSigned {
+                                                       node_id: their_node_id.clone(),
+                                                       msg,
+                                               });
+                                       }
+                                       (pending_forwards, pending_failures, chan.get().get_short_channel_id().expect("RAA should only work on a short-id-available channel"))
                                },
-                               None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                               hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                        }
                };
                for failure in pending_failures.drain(..) {
@@ -2296,41 +2410,44 @@ impl ChannelManager {
        }
 
        fn internal_update_fee(&self, their_node_id: &PublicKey, msg: &msgs::UpdateFee) -> Result<(), MsgHandleErrInternal> {
-               let mut channel_state = self.channel_state.lock().unwrap();
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               let mut channel_lock = self.channel_state.lock().unwrap();
+               let channel_state = channel_lock.borrow_parts();
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        //TODO: here and below MsgHandleErrInternal, #153 case
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               chan.update_fee(&*self.fee_estimator, &msg).map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))
+                               try_chan_entry!(self, chan.get_mut().update_fee(&*self.fee_estimator, &msg), channel_state, chan);
                        },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
+               Ok(())
        }
 
        fn internal_announcement_signatures(&self, their_node_id: &PublicKey, msg: &msgs::AnnouncementSignatures) -> Result<(), MsgHandleErrInternal> {
                let mut channel_state_lock = self.channel_state.lock().unwrap();
                let channel_state = channel_state_lock.borrow_parts();
 
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               if !chan.is_usable() {
+                               if !chan.get().is_usable() {
                                        return Err(MsgHandleErrInternal::from_no_close(HandleError{err: "Got an announcement_signatures before we were ready for it", action: Some(msgs::ErrorAction::IgnoreError)}));
                                }
 
                                let our_node_id = self.get_our_node_id();
-                               let (announcement, our_bitcoin_sig) = chan.get_channel_announcement(our_node_id.clone(), self.genesis_hash.clone())
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))?;
+                               let (announcement, our_bitcoin_sig) =
+                                       try_chan_entry!(self, chan.get_mut().get_channel_announcement(our_node_id.clone(), self.genesis_hash.clone()), channel_state, chan);
 
                                let were_node_one = announcement.node_id_1 == our_node_id;
                                let msghash = Message::from_slice(&Sha256dHash::from_data(&announcement.encode()[..])[..]).unwrap();
-                               let bad_sig_action = MsgHandleErrInternal::send_err_msg_close_chan("Bad announcement_signatures node_signature", msg.channel_id);
-                               secp_call!(self.secp_ctx.verify(&msghash, &msg.node_signature, if were_node_one { &announcement.node_id_2 } else { &announcement.node_id_1 }), bad_sig_action);
-                               secp_call!(self.secp_ctx.verify(&msghash, &msg.bitcoin_signature, if were_node_one { &announcement.bitcoin_key_2 } else { &announcement.bitcoin_key_1 }), bad_sig_action);
+                               if self.secp_ctx.verify(&msghash, &msg.node_signature, if were_node_one { &announcement.node_id_2 } else { &announcement.node_id_1 }).is_err() ||
+                                               self.secp_ctx.verify(&msghash, &msg.bitcoin_signature, if were_node_one { &announcement.bitcoin_key_2 } else { &announcement.bitcoin_key_1 }).is_err() {
+                                       try_chan_entry!(self, Err(ChannelError::Close("Bad announcement_signatures node_signature")), channel_state, chan);
+                               }
 
                                let our_node_sig = self.secp_ctx.sign(&msghash, &self.our_network_key);
 
@@ -2342,10 +2459,10 @@ impl ChannelManager {
                                                bitcoin_signature_2: if were_node_one { msg.bitcoin_signature } else { our_bitcoin_sig },
                                                contents: announcement,
                                        },
-                                       update_msg: self.get_channel_update(chan).unwrap(), // can only fail if we're not in a ready state
+                                       update_msg: self.get_channel_update(chan.get()).unwrap(), // can only fail if we're not in a ready state
                                });
                        },
-                       None => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
                Ok(())
        }
@@ -2354,16 +2471,26 @@ impl ChannelManager {
                let mut channel_state_lock = self.channel_state.lock().unwrap();
                let channel_state = channel_state_lock.borrow_parts();
 
-               match channel_state.by_id.get_mut(&msg.channel_id) {
-                       Some(chan) => {
-                               if chan.get_their_node_id() != *their_node_id {
+               match channel_state.by_id.entry(msg.channel_id) {
+                       hash_map::Entry::Occupied(mut chan) => {
+                               if chan.get().get_their_node_id() != *their_node_id {
                                        return Err(MsgHandleErrInternal::send_err_msg_no_close("Got a message for a channel from the wrong node!", msg.channel_id));
                                }
-                               let (funding_locked, revoke_and_ack, commitment_update, channel_monitor, order) = chan.channel_reestablish(msg)
-                                       .map_err(|e| MsgHandleErrInternal::from_chan_maybe_close(e, msg.channel_id))?;
+                               let (funding_locked, revoke_and_ack, commitment_update, channel_monitor, mut order, shutdown) =
+                                       try_chan_entry!(self, chan.get_mut().channel_reestablish(msg), channel_state, chan);
                                if let Some(monitor) = channel_monitor {
-                                       if let Err(_e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
-                                               unimplemented!();
+                                       if let Err(e) = self.monitor.add_update_monitor(monitor.get_funding_txo().unwrap(), monitor) {
+                                               // channel_reestablish doesn't guarantee the order it returns is sensical
+                                               // for the messages it returns, but if we're setting what messages to
+                                               // re-transmit on monitor update success, we need to make sure it is sane.
+                                               if revoke_and_ack.is_none() {
+                                                       order = RAACommitmentOrder::CommitmentFirst;
+                                               }
+                                               if commitment_update.is_none() {
+                                                       order = RAACommitmentOrder::RevokeAndACKFirst;
+                                               }
+                                               return_monitor_err!(self, e, channel_state, chan, order);
+                                               //TODO: Resend the funding_locked if needed once we get the monitor running again
                                        }
                                }
                                if let Some(msg) = funding_locked {
@@ -2398,9 +2525,15 @@ impl ChannelManager {
                                                send_raa!();
                                        },
                                }
+                               if let Some(msg) = shutdown {
+                                       channel_state.pending_msg_events.push(events::MessageSendEvent::SendShutdown {
+                                               node_id: their_node_id.clone(),
+                                               msg,
+                                       });
+                               }
                                Ok(())
                        },
-                       None => Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
+                       hash_map::Entry::Vacant(_) => return Err(MsgHandleErrInternal::send_err_msg_no_close("Failed to find corresponding channel", msg.channel_id))
                }
        }
 
@@ -2411,45 +2544,83 @@ impl ChannelManager {
        #[doc(hidden)]
        pub fn update_fee(&self, channel_id: [u8;32], feerate_per_kw: u64) -> Result<(), APIError> {
                let _ = self.total_consistency_lock.read().unwrap();
-               let mut channel_state_lock = self.channel_state.lock().unwrap();
-               let channel_state = channel_state_lock.borrow_parts();
+               let their_node_id;
+               let err: Result<(), _> = loop {
+                       let mut channel_state_lock = self.channel_state.lock().unwrap();
+                       let channel_state = channel_state_lock.borrow_parts();
 
-               match channel_state.by_id.get_mut(&channel_id) {
-                       None => return Err(APIError::APIMisuseError{err: "Failed to find corresponding channel"}),
-                       Some(chan) => {
-                               if !chan.is_outbound() {
-                                       return Err(APIError::APIMisuseError{err: "update_fee cannot be sent for an inbound channel"});
-                               }
-                               if chan.is_awaiting_monitor_update() {
-                                       return Err(APIError::MonitorUpdateFailed);
-                               }
-                               if !chan.is_live() {
-                                       return Err(APIError::ChannelUnavailable{err: "Channel is either not yet fully established or peer is currently disconnected"});
-                               }
-                               if let Some((update_fee, commitment_signed, chan_monitor)) = chan.send_update_fee_and_commit(feerate_per_kw).map_err(|e| APIError::APIMisuseError{err: e.err})? {
-                                       if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
-                                               unimplemented!();
+                       match channel_state.by_id.entry(channel_id) {
+                               hash_map::Entry::Vacant(_) => return Err(APIError::APIMisuseError{err: "Failed to find corresponding channel"}),
+                               hash_map::Entry::Occupied(mut chan) => {
+                                       if !chan.get().is_outbound() {
+                                               return Err(APIError::APIMisuseError{err: "update_fee cannot be sent for an inbound channel"});
                                        }
-                                       channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
-                                               node_id: chan.get_their_node_id(),
-                                               updates: msgs::CommitmentUpdate {
-                                                       update_add_htlcs: Vec::new(),
-                                                       update_fulfill_htlcs: Vec::new(),
-                                                       update_fail_htlcs: Vec::new(),
-                                                       update_fail_malformed_htlcs: Vec::new(),
-                                                       update_fee: Some(update_fee),
-                                                       commitment_signed,
-                                               },
+                                       if chan.get().is_awaiting_monitor_update() {
+                                               return Err(APIError::MonitorUpdateFailed);
+                                       }
+                                       if !chan.get().is_live() {
+                                               return Err(APIError::ChannelUnavailable{err: "Channel is either not yet fully established or peer is currently disconnected"});
+                                       }
+                                       their_node_id = chan.get().get_their_node_id();
+                                       if let Some((update_fee, commitment_signed, chan_monitor)) =
+                                                       break_chan_entry!(self, chan.get_mut().send_update_fee_and_commit(feerate_per_kw), channel_state, chan)
+                                       {
+                                               if let Err(_e) = self.monitor.add_update_monitor(chan_monitor.get_funding_txo().unwrap(), chan_monitor) {
+                                                       unimplemented!();
+                                               }
+                                               channel_state.pending_msg_events.push(events::MessageSendEvent::UpdateHTLCs {
+                                                       node_id: chan.get().get_their_node_id(),
+                                                       updates: msgs::CommitmentUpdate {
+                                                               update_add_htlcs: Vec::new(),
+                                                               update_fulfill_htlcs: Vec::new(),
+                                                               update_fail_htlcs: Vec::new(),
+                                                               update_fail_malformed_htlcs: Vec::new(),
+                                                               update_fee: Some(update_fee),
+                                                               commitment_signed,
+                                                       },
+                                               });
+                                       }
+                               },
+                       }
+                       return Ok(())
+               };
+
+               match handle_error!(self, err, their_node_id) {
+                       Ok(_) => unreachable!(),
+                       Err(e) => {
+                               if let Some(msgs::ErrorAction::IgnoreError) = e.action {
+                               } else {
+                                       log_error!(self, "Got bad keys: {}!", e.err);
+                                       let mut channel_state = self.channel_state.lock().unwrap();
+                                       channel_state.pending_msg_events.push(events::MessageSendEvent::HandleError {
+                                               node_id: their_node_id,
+                                               action: e.action,
                                        });
                                }
+                               Err(APIError::APIMisuseError { err: e.err })
                        },
                }
-               Ok(())
        }
 }
 
 impl events::MessageSendEventsProvider for ChannelManager {
        fn get_and_clear_pending_msg_events(&self) -> Vec<events::MessageSendEvent> {
+               // TODO: Event release to users and serialization is currently race-y: its very easy for a
+               // user to serialize a ChannelManager with pending events in it and lose those events on
+               // restart. This is doubly true for the fail/fulfill-backs from monitor events!
+               {
+                       //TODO: This behavior should be documented.
+                       for htlc_update in self.monitor.fetch_pending_htlc_updated() {
+                               if let Some(preimage) = htlc_update.payment_preimage {
+                                       log_trace!(self, "Claiming HTLC with preimage {} from our monitor", log_bytes!(preimage.0));
+                                       self.claim_funds_internal(self.channel_state.lock().unwrap(), htlc_update.source, preimage);
+                               } else {
+                                       log_trace!(self, "Failing HTLC with hash {} from our monitor", log_bytes!(htlc_update.payment_hash.0));
+                                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_update.source, &htlc_update.payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 8, data: Vec::new() });
+                               }
+                       }
+               }
+
                let mut ret = Vec::new();
                let mut channel_state = self.channel_state.lock().unwrap();
                mem::swap(&mut ret, &mut channel_state.pending_msg_events);
@@ -2459,6 +2630,22 @@ impl events::MessageSendEventsProvider for ChannelManager {
 
 impl events::EventsProvider for ChannelManager {
        fn get_and_clear_pending_events(&self) -> Vec<events::Event> {
+               // TODO: Event release to users and serialization is currently race-y: its very easy for a
+               // user to serialize a ChannelManager with pending events in it and lose those events on
+               // restart. This is doubly true for the fail/fulfill-backs from monitor events!
+               {
+                       //TODO: This behavior should be documented.
+                       for htlc_update in self.monitor.fetch_pending_htlc_updated() {
+                               if let Some(preimage) = htlc_update.payment_preimage {
+                                       log_trace!(self, "Claiming HTLC with preimage {} from our monitor", log_bytes!(preimage.0));
+                                       self.claim_funds_internal(self.channel_state.lock().unwrap(), htlc_update.source, preimage);
+                               } else {
+                                       log_trace!(self, "Failing HTLC with hash {} from our monitor", log_bytes!(htlc_update.payment_hash.0));
+                                       self.fail_htlc_backwards_internal(self.channel_state.lock().unwrap(), htlc_update.source, &htlc_update.payment_hash, HTLCFailReason::Reason { failure_code: 0x4000 | 8, data: Vec::new() });
+                               }
+                       }
+               }
+
                let mut ret = Vec::new();
                let mut pending_events = self.pending_events.lock().unwrap();
                mem::swap(&mut ret, &mut *pending_events);
@@ -2468,6 +2655,8 @@ impl events::EventsProvider for ChannelManager {
 
 impl ChainListener for ChannelManager {
        fn block_connected(&self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) {
+               let header_hash = header.bitcoin_hash();
+               log_trace!(self, "Block {} at height {} connected with {} txn matched", header_hash, height, txn_matched.len());
                let _ = self.total_consistency_lock.read().unwrap();
                let mut failed_channels = Vec::new();
                {
@@ -2492,16 +2681,15 @@ impl ChainListener for ChannelManager {
                                } else if let Err(e) = chan_res {
                                        pending_msg_events.push(events::MessageSendEvent::HandleError {
                                                node_id: channel.get_their_node_id(),
-                                               action: e.action,
+                                               action: Some(msgs::ErrorAction::SendErrorMessage { msg: e }),
                                        });
-                                       if channel.is_shutdown() {
-                                               return false;
-                                       }
+                                       return false;
                                }
                                if let Some(funding_txo) = channel.get_funding_txo() {
                                        for tx in txn_matched {
                                                for inp in tx.input.iter() {
                                                        if inp.previous_output == funding_txo.into_bitcoin_outpoint() {
+                                                               log_trace!(self, "Detected channel-closing tx {} spending {}:{}, closing channel {}", tx.txid(), inp.previous_output.txid, inp.previous_output.vout, log_bytes!(channel.channel_id()));
                                                                if let Some(short_id) = channel.get_short_channel_id() {
                                                                        short_to_id.remove(&short_id);
                                                                }
@@ -2542,7 +2730,7 @@ impl ChainListener for ChannelManager {
                        self.finish_force_close_channel(failure);
                }
                self.latest_block_height.store(height as usize, Ordering::Release);
-               *self.last_block_hash.try_lock().expect("block_(dis)connected must not be called in parallel") = header.bitcoin_hash();
+               *self.last_block_hash.try_lock().expect("block_(dis)connected must not be called in parallel") = header_hash;
        }
 
        /// We force-close the channel without letting our counterparty participate in the shutdown
@@ -2579,38 +2767,6 @@ impl ChainListener for ChannelManager {
        }
 }
 
-macro_rules! handle_error {
-       ($self: ident, $internal: expr, $their_node_id: expr) => {
-               match $internal {
-                       Ok(msg) => Ok(msg),
-                       Err(MsgHandleErrInternal { err, needs_channel_force_close }) => {
-                               if needs_channel_force_close {
-                                       match &err.action {
-                                               &Some(msgs::ErrorAction::DisconnectPeer { msg: Some(ref msg) }) => {
-                                                       if msg.channel_id == [0; 32] {
-                                                               $self.peer_disconnected(&$their_node_id, true);
-                                                       } else {
-                                                               $self.force_close_channel(&msg.channel_id);
-                                                       }
-                                               },
-                                               &Some(msgs::ErrorAction::DisconnectPeer { msg: None }) => {},
-                                               &Some(msgs::ErrorAction::IgnoreError) => {},
-                                               &Some(msgs::ErrorAction::SendErrorMessage { ref msg }) => {
-                                                       if msg.channel_id == [0; 32] {
-                                                               $self.peer_disconnected(&$their_node_id, true);
-                                                       } else {
-                                                               $self.force_close_channel(&msg.channel_id);
-                                                       }
-                                               },
-                                               &None => {},
-                                       }
-                               }
-                               Err(err)
-                       },
-               }
-       }
-}
-
 impl ChannelMessageHandler for ChannelManager {
        //TODO: Handle errors and close channel (or so)
        fn handle_open_channel(&self, their_node_id: &PublicKey, msg: &msgs::OpenChannel) -> Result<(), HandleError> {
@@ -3180,13 +3336,15 @@ mod tests {
        use chain::chaininterface;
        use chain::transaction::OutPoint;
        use chain::chaininterface::{ChainListener, ChainWatchInterface};
-       use chain::keysinterface::KeysInterface;
+       use chain::keysinterface::{KeysInterface, SpendableOutputDescriptor};
        use chain::keysinterface;
-       use ln::channelmanager::{ChannelManager,ChannelManagerReadArgs,OnionKeys,PaymentFailReason,RAACommitmentOrder};
+       use ln::channel::{COMMITMENT_TX_BASE_WEIGHT, COMMITMENT_TX_WEIGHT_PER_HTLC};
+       use ln::channelmanager::{ChannelManager,ChannelManagerReadArgs,OnionKeys,RAACommitmentOrder, PaymentPreimage, PaymentHash};
        use ln::channelmonitor::{ChannelMonitor, ChannelMonitorUpdateErr, CLTV_CLAIM_BUFFER, HTLC_FAIL_TIMEOUT_BLOCKS, ManyChannelMonitor};
+       use ln::channel::{ACCEPTED_HTLC_SCRIPT_WEIGHT, OFFERED_HTLC_SCRIPT_WEIGHT};
        use ln::router::{Route, RouteHop, Router};
        use ln::msgs;
-       use ln::msgs::{ChannelMessageHandler,RoutingMessageHandler};
+       use ln::msgs::{ChannelMessageHandler,RoutingMessageHandler,HTLCFailChannelUpdate};
        use util::test_utils;
        use util::events::{Event, EventsProvider, MessageSendEvent, MessageSendEventsProvider};
        use util::errors::APIError;
@@ -3194,26 +3352,29 @@ mod tests {
        use util::ser::{Writeable, Writer, ReadableArgs};
        use util::config::UserConfig;
 
-       use bitcoin::util::hash::Sha256dHash;
+       use bitcoin::util::hash::{BitcoinHash, Sha256dHash};
+       use bitcoin::util::bip143;
+       use bitcoin::util::address::Address;
+       use bitcoin::util::bip32::{ChildNumber, ExtendedPubKey, ExtendedPrivKey};
        use bitcoin::blockdata::block::{Block, BlockHeader};
-       use bitcoin::blockdata::transaction::{Transaction, TxOut};
+       use bitcoin::blockdata::transaction::{Transaction, TxOut, TxIn, SigHashType};
+       use bitcoin::blockdata::script::{Builder, Script};
+       use bitcoin::blockdata::opcodes;
        use bitcoin::blockdata::constants::genesis_block;
        use bitcoin::network::constants::Network;
-       use bitcoin::network::serialize::serialize;
-       use bitcoin::network::serialize::BitcoinHash;
+
+       use bitcoin_hashes::sha256::Hash as Sha256;
+       use bitcoin_hashes::Hash;
 
        use hex;
 
        use secp256k1::{Secp256k1, Message};
        use secp256k1::key::{PublicKey,SecretKey};
 
-       use crypto::sha2::Sha256;
-       use crypto::digest::Digest;
-
        use rand::{thread_rng,Rng};
 
        use std::cell::RefCell;
-       use std::collections::{BTreeSet, HashMap};
+       use std::collections::{BTreeSet, HashMap, HashSet};
        use std::default::Default;
        use std::rc::Rc;
        use std::sync::{Arc, Mutex};
@@ -3341,7 +3502,7 @@ mod tests {
                        },
                );
 
-               let packet = ChannelManager::construct_onion_packet(payloads, onion_keys, &[0x42; 32]);
+               let packet = ChannelManager::construct_onion_packet(payloads, onion_keys, &PaymentHash([0x42; 32]));
                // Just check the final packet encoding, as it includes all the per-hop vectors in it
                // anyway...
                assert_eq!(packet.encode(), hex::decode("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").unwrap());
@@ -3385,6 +3546,7 @@ mod tests {
                chain_monitor: Arc<chaininterface::ChainWatchInterfaceUtil>,
                tx_broadcaster: Arc<test_utils::TestBroadcaster>,
                chan_monitor: Arc<test_utils::TestChannelMonitor>,
+               keys_manager: Arc<test_utils::TestKeysInterface>,
                node: Arc<ChannelManager>,
                router: Router,
                node_seed: [u8; 32],
@@ -3471,6 +3633,17 @@ mod tests {
                }
        }
 
+       macro_rules! get_feerate {
+               ($node: expr, $channel_id: expr) => {
+                       {
+                               let chan_lock = $node.node.channel_state.lock().unwrap();
+                               let chan = chan_lock.by_id.get(&$channel_id).unwrap();
+                               chan.get_feerate()
+                       }
+               }
+       }
+
+
        fn create_chan_between_nodes_with_value_init(node_a: &Node, node_b: &Node, channel_value: u64, push_msat: u64) -> Transaction {
                node_a.node.create_channel(node_b.node.get_our_node_id(), channel_value, push_msat, 42).unwrap();
                node_b.node.handle_open_channel(&node_a.node.get_our_node_id(), &get_event_msg!(node_a, MessageSendEvent::SendOpenChannel, node_b.node.get_our_node_id())).unwrap();
@@ -3490,7 +3663,7 @@ mod tests {
                                tx = Transaction { version: chan_id as u32, lock_time: 0, input: Vec::new(), output: vec![TxOut {
                                        value: *channel_value_satoshis, script_pubkey: output_script.clone(),
                                }]};
-                               funding_output = OutPoint::new(Sha256dHash::from_data(&serialize(&tx).unwrap()[..]), 0);
+                               funding_output = OutPoint::new(tx.txid(), 0);
 
                                node_a.node.funding_transaction_generated(&temporary_channel_id, funding_output);
                                let mut added_monitors = node_a.chan_monitor.added_monitors.lock().unwrap();
@@ -3581,6 +3754,8 @@ mod tests {
                let as_update = match events_8[0] {
                        MessageSendEvent::BroadcastChannelAnnouncement { ref msg, ref update_msg } => {
                                assert!(*announcement == *msg);
+                               assert_eq!(update_msg.contents.short_channel_id, announcement.contents.short_channel_id);
+                               assert_eq!(update_msg.contents.short_channel_id, bs_update.contents.short_channel_id);
                                update_msg
                        },
                        _ => panic!("Unexpected event"),
@@ -3616,7 +3791,31 @@ mod tests {
                }
        }
 
-       fn close_channel(outbound_node: &Node, inbound_node: &Node, channel_id: &[u8; 32], funding_tx: Transaction, close_inbound_first: bool) -> (msgs::ChannelUpdate, msgs::ChannelUpdate) {
+       macro_rules! get_closing_signed_broadcast {
+               ($node: expr, $dest_pubkey: expr) => {
+                       {
+                               let events = $node.get_and_clear_pending_msg_events();
+                               assert!(events.len() == 1 || events.len() == 2);
+                               (match events[events.len() - 1] {
+                                       MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
+                                               assert_eq!(msg.contents.flags & 2, 2);
+                                               msg.clone()
+                                       },
+                                       _ => panic!("Unexpected event"),
+                               }, if events.len() == 2 {
+                                       match events[0] {
+                                               MessageSendEvent::SendClosingSigned { ref node_id, ref msg } => {
+                                                       assert_eq!(*node_id, $dest_pubkey);
+                                                       Some(msg.clone())
+                                               },
+                                               _ => panic!("Unexpected event"),
+                                       }
+                               } else { None })
+                       }
+               }
+       }
+
+       fn close_channel(outbound_node: &Node, inbound_node: &Node, channel_id: &[u8; 32], funding_tx: Transaction, close_inbound_first: bool) -> (msgs::ChannelUpdate, msgs::ChannelUpdate, Transaction) {
                let (node_a, broadcaster_a, struct_a) = if close_inbound_first { (&inbound_node.node, &inbound_node.tx_broadcaster, inbound_node) } else { (&outbound_node.node, &outbound_node.tx_broadcaster, outbound_node) };
                let (node_b, broadcaster_b) = if close_inbound_first { (&outbound_node.node, &outbound_node.tx_broadcaster) } else { (&inbound_node.node, &inbound_node.tx_broadcaster) };
                let (tx_a, tx_b);
@@ -3647,29 +3846,6 @@ mod tests {
                        })
                };
 
-               macro_rules! get_closing_signed_broadcast {
-                       ($node: expr, $dest_pubkey: expr) => {
-                               {
-                                       let events = $node.get_and_clear_pending_msg_events();
-                                       assert!(events.len() == 1 || events.len() == 2);
-                                       (match events[events.len() - 1] {
-                                               MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
-                                                       msg.clone()
-                                               },
-                                               _ => panic!("Unexpected event"),
-                                       }, if events.len() == 2 {
-                                               match events[0] {
-                                                       MessageSendEvent::SendClosingSigned { ref node_id, ref msg } => {
-                                                               assert_eq!(*node_id, $dest_pubkey);
-                                                               Some(msg.clone())
-                                                       },
-                                                       _ => panic!("Unexpected event"),
-                                               }
-                                       } else { None })
-                               }
-                       }
-               }
-
                node_a.handle_shutdown(&node_b.get_our_node_id(), &shutdown_b).unwrap();
                let (as_update, bs_update) = if close_inbound_first {
                        assert!(node_a.get_and_clear_pending_msg_events().is_empty());
@@ -3702,7 +3878,7 @@ mod tests {
                assert_eq!(tx_a, tx_b);
                check_spends!(tx_a, funding_tx);
 
-               (as_update, bs_update)
+               (as_update, bs_update, tx_a)
        }
 
        struct SendEvent {
@@ -3725,6 +3901,12 @@ mod tests {
                                _ => panic!("Unexpected event type!"),
                        }
                }
+
+               fn from_node(node: &Node) -> SendEvent {
+                       let mut events = node.node.get_and_clear_pending_msg_events();
+                       assert_eq!(events.len(), 1);
+                       SendEvent::from_event(events.pop().unwrap())
+               }
        }
 
        macro_rules! check_added_monitors {
@@ -3738,35 +3920,58 @@ mod tests {
        }
 
        macro_rules! commitment_signed_dance {
-               ($node_a: expr, $node_b: expr, $commitment_signed: expr, $fail_backwards: expr) => {
+               ($node_a: expr, $node_b: expr, $commitment_signed: expr, $fail_backwards: expr, true /* skip last step */) => {
                        {
                                check_added_monitors!($node_a, 0);
                                assert!($node_a.node.get_and_clear_pending_msg_events().is_empty());
                                $node_a.node.handle_commitment_signed(&$node_b.node.get_our_node_id(), &$commitment_signed).unwrap();
-                               let (as_revoke_and_ack, as_commitment_signed) = get_revoke_commit_msgs!($node_a, $node_b.node.get_our_node_id());
                                check_added_monitors!($node_a, 1);
+                               commitment_signed_dance!($node_a, $node_b, (), $fail_backwards, true, false);
+                       }
+               };
+               ($node_a: expr, $node_b: expr, (), $fail_backwards: expr, true /* skip last step */, true /* return extra message */, true /* return last RAA */) => {
+                       {
+                               let (as_revoke_and_ack, as_commitment_signed) = get_revoke_commit_msgs!($node_a, $node_b.node.get_our_node_id());
                                check_added_monitors!($node_b, 0);
                                assert!($node_b.node.get_and_clear_pending_msg_events().is_empty());
                                $node_b.node.handle_revoke_and_ack(&$node_a.node.get_our_node_id(), &as_revoke_and_ack).unwrap();
                                assert!($node_b.node.get_and_clear_pending_msg_events().is_empty());
                                check_added_monitors!($node_b, 1);
                                $node_b.node.handle_commitment_signed(&$node_a.node.get_our_node_id(), &as_commitment_signed).unwrap();
-                               let bs_revoke_and_ack = get_event_msg!($node_b, MessageSendEvent::SendRevokeAndACK, $node_a.node.get_our_node_id());
+                               let (bs_revoke_and_ack, extra_msg_option) = {
+                                       let events = $node_b.node.get_and_clear_pending_msg_events();
+                                       assert!(events.len() <= 2);
+                                       (match events[0] {
+                                               MessageSendEvent::SendRevokeAndACK { ref node_id, ref msg } => {
+                                                       assert_eq!(*node_id, $node_a.node.get_our_node_id());
+                                                       (*msg).clone()
+                                               },
+                                               _ => panic!("Unexpected event"),
+                                       }, events.get(1).map(|e| e.clone()))
+                               };
                                check_added_monitors!($node_b, 1);
                                if $fail_backwards {
                                        assert!($node_a.node.get_and_clear_pending_events().is_empty());
                                        assert!($node_a.node.get_and_clear_pending_msg_events().is_empty());
                                }
+                               (extra_msg_option, bs_revoke_and_ack)
+                       }
+               };
+               ($node_a: expr, $node_b: expr, $commitment_signed: expr, $fail_backwards: expr, true /* skip last step */, false /* return extra message */, true /* return last RAA */) => {
+                       {
+                               check_added_monitors!($node_a, 0);
+                               assert!($node_a.node.get_and_clear_pending_msg_events().is_empty());
+                               $node_a.node.handle_commitment_signed(&$node_b.node.get_our_node_id(), &$commitment_signed).unwrap();
+                               check_added_monitors!($node_a, 1);
+                               let (extra_msg_option, bs_revoke_and_ack) = commitment_signed_dance!($node_a, $node_b, (), $fail_backwards, true, true, true);
+                               assert!(extra_msg_option.is_none());
+                               bs_revoke_and_ack
+                       }
+               };
+               ($node_a: expr, $node_b: expr, (), $fail_backwards: expr, true /* skip last step */, true /* return extra message */) => {
+                       {
+                               let (extra_msg_option, bs_revoke_and_ack) = commitment_signed_dance!($node_a, $node_b, (), $fail_backwards, true, true, true);
                                $node_a.node.handle_revoke_and_ack(&$node_b.node.get_our_node_id(), &bs_revoke_and_ack).unwrap();
-                               if $fail_backwards {
-                                       let channel_state = $node_a.node.channel_state.lock().unwrap();
-                                       assert_eq!(channel_state.pending_msg_events.len(), 1);
-                                       if let MessageSendEvent::UpdateHTLCs { ref node_id, .. } = channel_state.pending_msg_events[0] {
-                                               assert_ne!(*node_id, $node_b.node.get_our_node_id());
-                                       } else { panic!("Unexpected event"); }
-                               } else {
-                                       assert!($node_a.node.get_and_clear_pending_msg_events().is_empty());
-                               }
                                {
                                        let mut added_monitors = $node_a.chan_monitor.added_monitors.lock().unwrap();
                                        if $fail_backwards {
@@ -3777,6 +3982,26 @@ mod tests {
                                        }
                                        added_monitors.clear();
                                }
+                               extra_msg_option
+                       }
+               };
+               ($node_a: expr, $node_b: expr, (), $fail_backwards: expr, true /* skip last step */, false /* no extra message */) => {
+                       {
+                               assert!(commitment_signed_dance!($node_a, $node_b, (), $fail_backwards, true, true).is_none());
+                       }
+               };
+               ($node_a: expr, $node_b: expr, $commitment_signed: expr, $fail_backwards: expr) => {
+                       {
+                               commitment_signed_dance!($node_a, $node_b, $commitment_signed, $fail_backwards, true);
+                               if $fail_backwards {
+                                       let channel_state = $node_a.node.channel_state.lock().unwrap();
+                                       assert_eq!(channel_state.pending_msg_events.len(), 1);
+                                       if let MessageSendEvent::UpdateHTLCs { ref node_id, .. } = channel_state.pending_msg_events[0] {
+                                               assert_ne!(*node_id, $node_b.node.get_our_node_id());
+                                       } else { panic!("Unexpected event"); }
+                               } else {
+                                       assert!($node_a.node.get_and_clear_pending_msg_events().is_empty());
+                               }
                        }
                }
        }
@@ -3784,18 +4009,15 @@ mod tests {
        macro_rules! get_payment_preimage_hash {
                ($node: expr) => {
                        {
-                               let payment_preimage = [*$node.network_payment_count.borrow(); 32];
+                               let payment_preimage = PaymentPreimage([*$node.network_payment_count.borrow(); 32]);
                                *$node.network_payment_count.borrow_mut() += 1;
-                               let mut payment_hash = [0; 32];
-                               let mut sha = Sha256::new();
-                               sha.input(&payment_preimage[..]);
-                               sha.result(&mut payment_hash);
+                               let payment_hash = PaymentHash(Sha256::hash(&payment_preimage.0[..]).into_inner());
                                (payment_preimage, payment_hash)
                        }
                }
        }
 
-       fn send_along_route(origin_node: &Node, route: Route, expected_route: &[&Node], recv_value: u64) -> ([u8; 32], [u8; 32]) {
+       fn send_along_route(origin_node: &Node, route: Route, expected_route: &[&Node], recv_value: u64) -> (PaymentPreimage, PaymentHash) {
                let (our_payment_preimage, our_payment_hash) = get_payment_preimage_hash!(origin_node);
 
                let mut payment_event = {
@@ -3849,7 +4071,7 @@ mod tests {
                (our_payment_preimage, our_payment_hash)
        }
 
-       fn claim_payment_along_route(origin_node: &Node, expected_route: &[&Node], skip_last: bool, our_payment_preimage: [u8; 32]) {
+       fn claim_payment_along_route(origin_node: &Node, expected_route: &[&Node], skip_last: bool, our_payment_preimage: PaymentPreimage) {
                assert!(expected_route.last().unwrap().node.claim_funds(our_payment_preimage));
                check_added_monitors!(expected_route.last().unwrap(), 1);
 
@@ -3934,13 +4156,13 @@ mod tests {
                }
        }
 
-       fn claim_payment(origin_node: &Node, expected_route: &[&Node], our_payment_preimage: [u8; 32]) {
+       fn claim_payment(origin_node: &Node, expected_route: &[&Node], our_payment_preimage: PaymentPreimage) {
                claim_payment_along_route(origin_node, expected_route, false, our_payment_preimage);
        }
 
        const TEST_FINAL_CLTV: u32 = 32;
 
-       fn route_payment(origin_node: &Node, expected_route: &[&Node], recv_value: u64) -> ([u8; 32], [u8; 32]) {
+       fn route_payment(origin_node: &Node, expected_route: &[&Node], recv_value: u64) -> (PaymentPreimage, PaymentHash) {
                let route = origin_node.router.get_route(&expected_route.last().unwrap().node.get_our_node_id(), None, &Vec::new(), recv_value, TEST_FINAL_CLTV).unwrap();
                assert_eq!(route.hops.len(), expected_route.len());
                for (node, hop) in expected_route.iter().zip(route.hops.iter()) {
@@ -3971,8 +4193,8 @@ mod tests {
                claim_payment(&origin, expected_route, our_payment_preimage);
        }
 
-       fn fail_payment_along_route(origin_node: &Node, expected_route: &[&Node], skip_last: bool, our_payment_hash: [u8; 32]) {
-               assert!(expected_route.last().unwrap().node.fail_htlc_backwards(&our_payment_hash, PaymentFailReason::PreimageUnknown));
+       fn fail_payment_along_route(origin_node: &Node, expected_route: &[&Node], skip_last: bool, our_payment_hash: PaymentHash) {
+               assert!(expected_route.last().unwrap().node.fail_htlc_backwards(&our_payment_hash, 0));
                check_added_monitors!(expected_route.last().unwrap(), 1);
 
                let mut next_msgs: Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned)> = None;
@@ -4027,7 +4249,7 @@ mod tests {
                        let events = origin_node.node.get_and_clear_pending_events();
                        assert_eq!(events.len(), 1);
                        match events[0] {
-                               Event::PaymentFailed { payment_hash, rejected_by_dest } => {
+                               Event::PaymentFailed { payment_hash, rejected_by_dest, .. } => {
                                        assert_eq!(payment_hash, our_payment_hash);
                                        assert!(rejected_by_dest);
                                },
@@ -4036,7 +4258,7 @@ mod tests {
                }
        }
 
-       fn fail_payment(origin_node: &Node, expected_route: &[&Node], our_payment_hash: [u8; 32]) {
+       fn fail_payment(origin_node: &Node, expected_route: &[&Node], our_payment_hash: PaymentHash) {
                fail_payment_along_route(origin_node, expected_route, false, our_payment_hash);
        }
 
@@ -4044,25 +4266,25 @@ mod tests {
                let mut nodes = Vec::new();
                let mut rng = thread_rng();
                let secp_ctx = Secp256k1::new();
-               let logger: Arc<Logger> = Arc::new(test_utils::TestLogger::new());
 
                let chan_count = Rc::new(RefCell::new(0));
                let payment_count = Rc::new(RefCell::new(0));
 
-               for _ in 0..node_count {
+               for i in 0..node_count {
+                       let logger: Arc<Logger> = Arc::new(test_utils::TestLogger::with_id(format!("node {}", i)));
                        let feeest = Arc::new(test_utils::TestFeeEstimator { sat_per_kw: 253 });
                        let chain_monitor = Arc::new(chaininterface::ChainWatchInterfaceUtil::new(Network::Testnet, Arc::clone(&logger)));
                        let tx_broadcaster = Arc::new(test_utils::TestBroadcaster{txn_broadcasted: Mutex::new(Vec::new())});
                        let mut seed = [0; 32];
                        rng.fill_bytes(&mut seed);
-                       let keys_manager = Arc::new(keysinterface::KeysManager::new(&seed, Network::Testnet, Arc::clone(&logger)));
+                       let keys_manager = Arc::new(test_utils::TestKeysInterface::new(&seed, Network::Testnet, Arc::clone(&logger)));
                        let chan_monitor = Arc::new(test_utils::TestChannelMonitor::new(chain_monitor.clone(), tx_broadcaster.clone(), logger.clone()));
                        let mut config = UserConfig::new();
                        config.channel_options.announced_channel = true;
                        config.channel_limits.force_announced_channel_preference = false;
                        let node = ChannelManager::new(Network::Testnet, feeest.clone(), chan_monitor.clone(), chain_monitor.clone(), tx_broadcaster.clone(), Arc::clone(&logger), keys_manager.clone(), config).unwrap();
                        let router = Router::new(PublicKey::from_secret_key(&secp_ctx, &keys_manager.get_node_secret()), chain_monitor.clone(), Arc::clone(&logger));
-                       nodes.push(Node { chain_monitor, tx_broadcaster, chan_monitor, node, router, node_seed: seed,
+                       nodes.push(Node { chain_monitor, tx_broadcaster, chan_monitor, node, router, keys_manager, node_seed: seed,
                                network_payment_count: payment_count.clone(),
                                network_chan_count: chan_count.clone(),
                        });
@@ -4077,14 +4299,6 @@ mod tests {
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
                // balancing
                send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000);
 
@@ -4106,7 +4320,7 @@ mod tests {
                // (6) RAA is delivered                  ->
 
                // First nodes[0] generates an update_fee
-               nodes[0].node.update_fee(channel_id, get_feerate!(nodes[0]) + 20).unwrap();
+               nodes[0].node.update_fee(channel_id, get_feerate!(nodes[0], channel_id) + 20).unwrap();
                check_added_monitors!(nodes[0], 1);
 
                let events_0 = nodes[0].node.get_and_clear_pending_msg_events();
@@ -4195,19 +4409,11 @@ mod tests {
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
                // balancing
                send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000);
 
                // First nodes[0] generates an update_fee
-               nodes[0].node.update_fee(channel_id, get_feerate!(nodes[0]) + 20).unwrap();
+               nodes[0].node.update_fee(channel_id, get_feerate!(nodes[0], channel_id) + 20).unwrap();
                check_added_monitors!(nodes[0], 1);
 
                let events_0 = nodes[0].node.get_and_clear_pending_msg_events();
@@ -4253,14 +4459,6 @@ mod tests {
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
                // A                                        B
                // update_fee/commitment_signed          ->
                //                                       .- send (1) RAA and (2) commitment_signed
@@ -4281,7 +4479,7 @@ mod tests {
                // revoke_and_ack                        ->
 
                // First nodes[0] generates an update_fee
-               let initial_feerate = get_feerate!(nodes[0]);
+               let initial_feerate = get_feerate!(nodes[0], channel_id);
                nodes[0].node.update_fee(channel_id, initial_feerate + 20).unwrap();
                check_added_monitors!(nodes[0], 1);
 
@@ -4365,16 +4563,8 @@ mod tests {
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
-               let feerate = get_feerate!(nodes[0]);
-               nodes[0].node.update_fee(channel_id, feerate+20).unwrap();
+               let feerate = get_feerate!(nodes[0], channel_id);
+               nodes[0].node.update_fee(channel_id, feerate+25).unwrap();
                check_added_monitors!(nodes[0], 1);
 
                let events_0 = nodes[0].node.get_and_clear_pending_msg_events();
@@ -4405,24 +4595,69 @@ mod tests {
                check_added_monitors!(nodes[1], 1);
        }
 
+       #[test]
+       fn test_update_fee_that_funder_cannot_afford() {
+               let nodes = create_network(2);
+               let channel_value = 1888;
+               let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, channel_value, 700000);
+               let channel_id = chan.2;
+
+               let feerate = 260;
+               nodes[0].node.update_fee(channel_id, feerate).unwrap();
+               check_added_monitors!(nodes[0], 1);
+               let update_msg = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+
+               nodes[1].node.handle_update_fee(&nodes[0].node.get_our_node_id(), &update_msg.update_fee.unwrap()).unwrap();
+
+               commitment_signed_dance!(nodes[1], nodes[0], update_msg.commitment_signed, false);
+
+               //Confirm that the new fee based on the last local commitment txn is what we expected based on the feerate of 260 set above.
+               //This value results in a fee that is exactly what the funder can afford (277 sat + 1000 sat channel reserve)
+               {
+                       let chan_lock = nodes[1].node.channel_state.lock().unwrap();
+                       let chan = chan_lock.by_id.get(&channel_id).unwrap();
+
+                       //We made sure neither party's funds are below the dust limit so -2 non-HTLC txns from number of outputs
+                       let num_htlcs = chan.last_local_commitment_txn[0].output.len() - 2;
+                       let total_fee: u64 = feerate * (COMMITMENT_TX_BASE_WEIGHT + (num_htlcs as u64) * COMMITMENT_TX_WEIGHT_PER_HTLC) / 1000;
+                       let mut actual_fee = chan.last_local_commitment_txn[0].output.iter().fold(0, |acc, output| acc + output.value);
+                       actual_fee = channel_value - actual_fee;
+                       assert_eq!(total_fee, actual_fee);
+               } //drop the mutex
+
+               //Add 2 to the previous fee rate to the final fee increases by 1 (with no HTLCs the fee is essentially
+               //fee_rate*(724/1000) so the increment of 1*0.724 is rounded back down)
+               nodes[0].node.update_fee(channel_id, feerate+2).unwrap();
+               check_added_monitors!(nodes[0], 1);
+
+               let update2_msg = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+
+               nodes[1].node.handle_update_fee(&nodes[0].node.get_our_node_id(), &update2_msg.update_fee.unwrap()).unwrap();
+
+               //While producing the commitment_signed response after handling a received update_fee request the
+               //check to see if the funder, who sent the update_fee request, can afford the new fee (funder_balance >= fee+channel_reserve)
+               //Should produce and error.
+               let err = nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &update2_msg.commitment_signed).unwrap_err();
+
+               assert!(match err.err {
+                       "Funding remote cannot afford proposed new fee" => true,
+                       _ => false,
+               });
+
+               //clear the message we could not handle
+               nodes[1].node.get_and_clear_pending_msg_events();
+       }
+
        #[test]
        fn test_update_fee_with_fundee_update_add_htlc() {
                let mut nodes = create_network(2);
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
                // balancing
                send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000);
 
-               let feerate = get_feerate!(nodes[0]);
+               let feerate = get_feerate!(nodes[0], channel_id);
                nodes[0].node.update_fee(channel_id, feerate+20).unwrap();
                check_added_monitors!(nodes[0], 1);
 
@@ -4520,14 +4755,6 @@ mod tests {
                let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
                let channel_id = chan.2;
 
-               macro_rules! get_feerate {
-                       ($node: expr) => {{
-                               let chan_lock = $node.node.channel_state.lock().unwrap();
-                               let chan = chan_lock.by_id.get(&channel_id).unwrap();
-                               chan.get_feerate()
-                       }}
-               }
-
                // A                                        B
                // (1) update_fee/commitment_signed      ->
                //                                       <- (2) revoke_and_ack
@@ -4543,7 +4770,7 @@ mod tests {
                // revoke_and_ack                        ->
 
                // Create and deliver (1)...
-               let feerate = get_feerate!(nodes[0]);
+               let feerate = get_feerate!(nodes[0], channel_id);
                nodes[0].node.update_fee(channel_id, feerate+20).unwrap();
                check_added_monitors!(nodes[0], 1);
 
@@ -4617,11 +4844,349 @@ mod tests {
                check_added_monitors!(nodes[1], 1);
                assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
 
-               assert_eq!(get_feerate!(nodes[0]), feerate + 30);
-               assert_eq!(get_feerate!(nodes[1]), feerate + 30);
+               assert_eq!(get_feerate!(nodes[0], channel_id), feerate + 30);
+               assert_eq!(get_feerate!(nodes[1], channel_id), feerate + 30);
                close_channel(&nodes[0], &nodes[1], &chan.2, chan.3, true);
        }
 
+       #[test]
+       fn pre_funding_lock_shutdown_test() {
+               // Test sending a shutdown prior to funding_locked after funding generation
+               let nodes = create_network(2);
+               let tx = create_chan_between_nodes_with_value_init(&nodes[0], &nodes[1], 8000000, 0);
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[0].chain_monitor.block_connected_checked(&header, 1, &[&tx; 1], &[1; 1]);
+               nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&tx; 1], &[1; 1]);
+
+               nodes[0].node.close_channel(&OutPoint::new(tx.txid(), 0).to_channel_id()).unwrap();
+               let node_0_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+               nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_shutdown).unwrap();
+               let node_1_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_shutdown).unwrap();
+
+               let node_0_closing_signed = get_event_msg!(nodes[0], MessageSendEvent::SendClosingSigned, nodes[1].node.get_our_node_id());
+               nodes[1].node.handle_closing_signed(&nodes[0].node.get_our_node_id(), &node_0_closing_signed).unwrap();
+               let (_, node_1_closing_signed) = get_closing_signed_broadcast!(nodes[1].node, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_closing_signed(&nodes[1].node.get_our_node_id(), &node_1_closing_signed.unwrap()).unwrap();
+               let (_, node_0_none) = get_closing_signed_broadcast!(nodes[0].node, nodes[1].node.get_our_node_id());
+               assert!(node_0_none.is_none());
+
+               assert!(nodes[0].node.list_channels().is_empty());
+               assert!(nodes[1].node.list_channels().is_empty());
+       }
+
+       #[test]
+       fn updates_shutdown_wait() {
+               // Test sending a shutdown with outstanding updates pending
+               let mut nodes = create_network(3);
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+               let route_1 = nodes[0].router.get_route(&nodes[1].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV).unwrap();
+               let route_2 = nodes[1].router.get_route(&nodes[0].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV).unwrap();
+
+               let (our_payment_preimage, _) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 100000);
+
+               nodes[0].node.close_channel(&chan_1.2).unwrap();
+               let node_0_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+               nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_shutdown).unwrap();
+               let node_1_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_shutdown).unwrap();
+
+               assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+               let (_, payment_hash) = get_payment_preimage_hash!(nodes[0]);
+               if let Err(APIError::ChannelUnavailable {..}) = nodes[0].node.send_payment(route_1, payment_hash) {}
+               else { panic!("New sends should fail!") };
+               if let Err(APIError::ChannelUnavailable {..}) = nodes[1].node.send_payment(route_2, payment_hash) {}
+               else { panic!("New sends should fail!") };
+
+               assert!(nodes[2].node.claim_funds(our_payment_preimage));
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               nodes[1].node.handle_update_fulfill_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               let updates_2 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               commitment_signed_dance!(nodes[1], nodes[2], updates.commitment_signed, false);
+
+               assert!(updates_2.update_add_htlcs.is_empty());
+               assert!(updates_2.update_fail_htlcs.is_empty());
+               assert!(updates_2.update_fail_malformed_htlcs.is_empty());
+               assert!(updates_2.update_fee.is_none());
+               assert_eq!(updates_2.update_fulfill_htlcs.len(), 1);
+               nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &updates_2.update_fulfill_htlcs[0]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], updates_2.commitment_signed, false, true);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentSent { ref payment_preimage } => {
+                               assert_eq!(our_payment_preimage, *payment_preimage);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               let node_0_closing_signed = get_event_msg!(nodes[0], MessageSendEvent::SendClosingSigned, nodes[1].node.get_our_node_id());
+               nodes[1].node.handle_closing_signed(&nodes[0].node.get_our_node_id(), &node_0_closing_signed).unwrap();
+               let (_, node_1_closing_signed) = get_closing_signed_broadcast!(nodes[1].node, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_closing_signed(&nodes[1].node.get_our_node_id(), &node_1_closing_signed.unwrap()).unwrap();
+               let (_, node_0_none) = get_closing_signed_broadcast!(nodes[0].node, nodes[1].node.get_our_node_id());
+               assert!(node_0_none.is_none());
+
+               assert!(nodes[0].node.list_channels().is_empty());
+
+               assert_eq!(nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 1);
+               nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clear();
+               close_channel(&nodes[1], &nodes[2], &chan_2.2, chan_2.3, true);
+               assert!(nodes[1].node.list_channels().is_empty());
+               assert!(nodes[2].node.list_channels().is_empty());
+       }
+
+       #[test]
+       fn htlc_fail_async_shutdown() {
+               // Test HTLCs fail if shutdown starts even if messages are delivered out-of-order
+               let mut nodes = create_network(3);
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let route = nodes[0].router.get_route(&nodes[2].node.get_our_node_id(), None, &[], 100000, TEST_FINAL_CLTV).unwrap();
+               let (_, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+               nodes[0].node.send_payment(route, our_payment_hash).unwrap();
+               check_added_monitors!(nodes[0], 1);
+               let updates = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+               assert_eq!(updates.update_add_htlcs.len(), 1);
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+
+               nodes[1].node.close_channel(&chan_1.2).unwrap();
+               let node_1_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_shutdown).unwrap();
+               let node_0_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+
+               nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &updates.update_add_htlcs[0]).unwrap();
+               nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &updates.commitment_signed).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_shutdown).unwrap();
+               commitment_signed_dance!(nodes[1], nodes[0], (), false, true, false);
+
+               let updates_2 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               assert!(updates_2.update_add_htlcs.is_empty());
+               assert!(updates_2.update_fulfill_htlcs.is_empty());
+               assert_eq!(updates_2.update_fail_htlcs.len(), 1);
+               assert!(updates_2.update_fail_malformed_htlcs.is_empty());
+               assert!(updates_2.update_fee.is_none());
+
+               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &updates_2.update_fail_htlcs[0]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], updates_2.commitment_signed, false, true);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentFailed { ref payment_hash, ref rejected_by_dest, .. } => {
+                               assert_eq!(our_payment_hash, *payment_hash);
+                               assert!(!rejected_by_dest);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               let msg_events = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(msg_events.len(), 2);
+               let node_0_closing_signed = match msg_events[0] {
+                       MessageSendEvent::SendClosingSigned { ref node_id, ref msg } => {
+                               assert_eq!(*node_id, nodes[1].node.get_our_node_id());
+                               (*msg).clone()
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+               match msg_events[1] {
+                       MessageSendEvent::PaymentFailureNetworkUpdate { update: msgs::HTLCFailChannelUpdate::ChannelUpdateMessage { ref msg }} => {
+                               assert_eq!(msg.contents.short_channel_id, chan_1.0.contents.short_channel_id);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+               nodes[1].node.handle_closing_signed(&nodes[0].node.get_our_node_id(), &node_0_closing_signed).unwrap();
+               let (_, node_1_closing_signed) = get_closing_signed_broadcast!(nodes[1].node, nodes[0].node.get_our_node_id());
+               nodes[0].node.handle_closing_signed(&nodes[1].node.get_our_node_id(), &node_1_closing_signed.unwrap()).unwrap();
+               let (_, node_0_none) = get_closing_signed_broadcast!(nodes[0].node, nodes[1].node.get_our_node_id());
+               assert!(node_0_none.is_none());
+
+               assert!(nodes[0].node.list_channels().is_empty());
+
+               assert_eq!(nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 1);
+               nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clear();
+               close_channel(&nodes[1], &nodes[2], &chan_2.2, chan_2.3, true);
+               assert!(nodes[1].node.list_channels().is_empty());
+               assert!(nodes[2].node.list_channels().is_empty());
+       }
+
+       fn do_test_shutdown_rebroadcast(recv_count: u8) {
+               // Test that shutdown/closing_signed is re-sent on reconnect with a variable number of
+               // messages delivered prior to disconnect
+               let nodes = create_network(3);
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let (our_payment_preimage, _) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 100000);
+
+               nodes[1].node.close_channel(&chan_1.2).unwrap();
+               let node_1_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+               if recv_count > 0 {
+                       nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_shutdown).unwrap();
+                       let node_0_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+                       if recv_count > 1 {
+                               nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_shutdown).unwrap();
+                       }
+               }
+
+               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
+
+               nodes[0].node.peer_connected(&nodes[1].node.get_our_node_id());
+               let node_0_reestablish = get_event_msg!(nodes[0], MessageSendEvent::SendChannelReestablish, nodes[1].node.get_our_node_id());
+               nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id());
+               let node_1_reestablish = get_event_msg!(nodes[1], MessageSendEvent::SendChannelReestablish, nodes[0].node.get_our_node_id());
+
+               nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), &node_0_reestablish).unwrap();
+               let node_1_2nd_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+               assert!(node_1_shutdown == node_1_2nd_shutdown);
+
+               nodes[0].node.handle_channel_reestablish(&nodes[1].node.get_our_node_id(), &node_1_reestablish).unwrap();
+               let node_0_2nd_shutdown = if recv_count > 0 {
+                       let node_0_2nd_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+                       nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_2nd_shutdown).unwrap();
+                       node_0_2nd_shutdown
+               } else {
+                       assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
+                       nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_2nd_shutdown).unwrap();
+                       get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id())
+               };
+               nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_2nd_shutdown).unwrap();
+
+               assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+               assert!(nodes[2].node.claim_funds(our_payment_preimage));
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               nodes[1].node.handle_update_fulfill_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               let updates_2 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               commitment_signed_dance!(nodes[1], nodes[2], updates.commitment_signed, false);
+
+               assert!(updates_2.update_add_htlcs.is_empty());
+               assert!(updates_2.update_fail_htlcs.is_empty());
+               assert!(updates_2.update_fail_malformed_htlcs.is_empty());
+               assert!(updates_2.update_fee.is_none());
+               assert_eq!(updates_2.update_fulfill_htlcs.len(), 1);
+               nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &updates_2.update_fulfill_htlcs[0]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], updates_2.commitment_signed, false, true);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentSent { ref payment_preimage } => {
+                               assert_eq!(our_payment_preimage, *payment_preimage);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               let node_0_closing_signed = get_event_msg!(nodes[0], MessageSendEvent::SendClosingSigned, nodes[1].node.get_our_node_id());
+               if recv_count > 0 {
+                       nodes[1].node.handle_closing_signed(&nodes[0].node.get_our_node_id(), &node_0_closing_signed).unwrap();
+                       let (_, node_1_closing_signed) = get_closing_signed_broadcast!(nodes[1].node, nodes[0].node.get_our_node_id());
+                       assert!(node_1_closing_signed.is_some());
+               }
+
+               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
+
+               nodes[0].node.peer_connected(&nodes[1].node.get_our_node_id());
+               let node_0_2nd_reestablish = get_event_msg!(nodes[0], MessageSendEvent::SendChannelReestablish, nodes[1].node.get_our_node_id());
+               nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id());
+               if recv_count == 0 {
+                       // If all closing_signeds weren't delivered we can just resume where we left off...
+                       let node_1_2nd_reestablish = get_event_msg!(nodes[1], MessageSendEvent::SendChannelReestablish, nodes[0].node.get_our_node_id());
+
+                       nodes[0].node.handle_channel_reestablish(&nodes[1].node.get_our_node_id(), &node_1_2nd_reestablish).unwrap();
+                       let node_0_3rd_shutdown = get_event_msg!(nodes[0], MessageSendEvent::SendShutdown, nodes[1].node.get_our_node_id());
+                       assert!(node_0_2nd_shutdown == node_0_3rd_shutdown);
+
+                       nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), &node_0_2nd_reestablish).unwrap();
+                       let node_1_3rd_shutdown = get_event_msg!(nodes[1], MessageSendEvent::SendShutdown, nodes[0].node.get_our_node_id());
+                       assert!(node_1_3rd_shutdown == node_1_2nd_shutdown);
+
+                       nodes[1].node.handle_shutdown(&nodes[0].node.get_our_node_id(), &node_0_3rd_shutdown).unwrap();
+                       assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+                       nodes[0].node.handle_shutdown(&nodes[1].node.get_our_node_id(), &node_1_3rd_shutdown).unwrap();
+                       let node_0_2nd_closing_signed = get_event_msg!(nodes[0], MessageSendEvent::SendClosingSigned, nodes[1].node.get_our_node_id());
+                       assert!(node_0_closing_signed == node_0_2nd_closing_signed);
+
+                       nodes[1].node.handle_closing_signed(&nodes[0].node.get_our_node_id(), &node_0_2nd_closing_signed).unwrap();
+                       let (_, node_1_closing_signed) = get_closing_signed_broadcast!(nodes[1].node, nodes[0].node.get_our_node_id());
+                       nodes[0].node.handle_closing_signed(&nodes[1].node.get_our_node_id(), &node_1_closing_signed.unwrap()).unwrap();
+                       let (_, node_0_none) = get_closing_signed_broadcast!(nodes[0].node, nodes[1].node.get_our_node_id());
+                       assert!(node_0_none.is_none());
+               } else {
+                       // If one node, however, received + responded with an identical closing_signed we end
+                       // up erroring and node[0] will try to broadcast its own latest commitment transaction.
+                       // There isn't really anything better we can do simply, but in the future we might
+                       // explore storing a set of recently-closed channels that got disconnected during
+                       // closing_signed and avoiding broadcasting local commitment txn for some timeout to
+                       // give our counterparty enough time to (potentially) broadcast a cooperative closing
+                       // transaction.
+                       assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+                       if let Err(msgs::HandleError{action: Some(msgs::ErrorAction::SendErrorMessage{msg}), ..}) =
+                                       nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), &node_0_2nd_reestablish) {
+                               nodes[0].node.handle_error(&nodes[1].node.get_our_node_id(), &msg);
+                               let msgs::ErrorMessage {ref channel_id, ..} = msg;
+                               assert_eq!(*channel_id, chan_1.2);
+                       } else { panic!("Needed SendErrorMessage close"); }
+
+                       // get_closing_signed_broadcast usually eats the BroadcastChannelUpdate for us and
+                       // checks it, but in this case nodes[0] didn't ever get a chance to receive a
+                       // closing_signed so we do it ourselves
+                       let events = nodes[0].node.get_and_clear_pending_msg_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
+                                       assert_eq!(msg.contents.flags & 2, 2);
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+               }
+
+               assert!(nodes[0].node.list_channels().is_empty());
+
+               assert_eq!(nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().len(), 1);
+               nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clear();
+               close_channel(&nodes[1], &nodes[2], &chan_2.2, chan_2.3, true);
+               assert!(nodes[1].node.list_channels().is_empty());
+               assert!(nodes[2].node.list_channels().is_empty());
+       }
+
+       #[test]
+       fn test_shutdown_rebroadcast() {
+               do_test_shutdown_rebroadcast(0);
+               do_test_shutdown_rebroadcast(1);
+               do_test_shutdown_rebroadcast(2);
+       }
+
        #[test]
        fn fake_network_test() {
                // Simple test which builds a network of ChannelManagers, connects them to each other, and
@@ -4806,7 +5371,10 @@ mod tests {
                                        false
                                } else { true }
                        });
-                       assert_eq!(res.len(), 2);
+                       assert!(res.len() == 2 || res.len() == 3);
+                       if res.len() == 3 {
+                               assert_eq!(res[1], res[2]);
+                       }
                }
 
                assert!(node_txn.is_empty());
@@ -4889,8 +5457,7 @@ mod tests {
                }}
        }
 
-       #[test]
-       fn channel_reserve_test() {
+       fn do_channel_reserve_test(test_recv: bool) {
                use util::rng;
                use std::sync::atomic::Ordering;
                use ln::msgs::HandleError;
@@ -5047,9 +5614,23 @@ mod tests {
                                onion_routing_packet: onion_packet,
                        };
 
-                       let err = nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &msg).err().unwrap();
-                       match err {
-                               HandleError{err, .. } => assert_eq!(err, "Remote HTLC add would put them over their reserve value"),
+                       if test_recv {
+                               let err = nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &msg).err().unwrap();
+                               match err {
+                                       HandleError{err, .. } => assert_eq!(err, "Remote HTLC add would put them over their reserve value"),
+                               }
+                               // If we send a garbage message, the channel should get closed, making the rest of this test case fail.
+                               assert_eq!(nodes[1].node.list_channels().len(), 1);
+                               assert_eq!(nodes[1].node.list_channels().len(), 1);
+                               let channel_close_broadcast = nodes[1].node.get_and_clear_pending_msg_events();
+                               assert_eq!(channel_close_broadcast.len(), 1);
+                               match channel_close_broadcast[0] {
+                                       MessageSendEvent::BroadcastChannelUpdate { ref msg } => {
+                                               assert_eq!(msg.contents.flags & 2, 2);
+                                       },
+                                       _ => panic!("Unexpected event"),
+                               }
+                               return;
                        }
                }
 
@@ -5157,6 +5738,12 @@ mod tests {
                assert_eq!(stat2.value_to_self_msat, stat22.value_to_self_msat + recv_value_1 + recv_value_21 + recv_value_22);
        }
 
+       #[test]
+       fn channel_reserve_test() {
+               do_channel_reserve_test(false);
+               do_channel_reserve_test(true);
+       }
+
        #[test]
        fn channel_monitor_network_test() {
                // Simple test which builds a network of ChannelManagers, connects them to each other, and
@@ -5282,7 +5869,13 @@ mod tests {
                get_announce_close_broadcast_events(&nodes, 3, 4);
                assert_eq!(nodes[3].node.list_channels().len(), 0);
                assert_eq!(nodes[4].node.list_channels().len(), 0);
+       }
+
+       #[test]
+       fn test_justice_tx() {
+               // Test justice txn built on revoked HTLC-Success tx, against both sides
 
+               let nodes = create_network(2);
                // Create some new channels:
                let chan_5 = create_announced_chan_between_nodes(&nodes, 0, 1);
 
@@ -5296,7 +5889,7 @@ mod tests {
                assert_eq!(revoked_local_txn[0].output.len(), 2); // Only HTLC and output back to 0 are present
                assert_eq!(revoked_local_txn[1].input.len(), 1);
                assert_eq!(revoked_local_txn[1].input[0].previous_output.txid, revoked_local_txn[0].txid());
-               assert_eq!(revoked_local_txn[1].input[0].witness.last().unwrap().len(), 133); // HTLC-Timeout
+               assert_eq!(revoked_local_txn[1].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT); // HTLC-Timeout
                // Revoke the old state
                claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage_3);
 
@@ -5321,6 +5914,45 @@ mod tests {
                        test_revoked_htlc_claim_txn_broadcast(&nodes[1], node_txn[1].clone());
                }
                get_announce_close_broadcast_events(&nodes, 0, 1);
+
+               assert_eq!(nodes[0].node.list_channels().len(), 0);
+               assert_eq!(nodes[1].node.list_channels().len(), 0);
+
+               // We test justice_tx build by A on B's revoked HTLC-Success tx
+               // Create some new channels:
+               let chan_6 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               // A pending HTLC which will be revoked:
+               let payment_preimage_4 = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               // Get the will-be-revoked local txn from B
+               let revoked_local_txn = nodes[1].node.channel_state.lock().unwrap().by_id.iter().next().unwrap().1.last_local_commitment_txn.clone();
+               assert_eq!(revoked_local_txn.len(), 1); // Only commitment tx
+               assert_eq!(revoked_local_txn[0].input.len(), 1);
+               assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_6.3.txid());
+               assert_eq!(revoked_local_txn[0].output.len(), 2); // Only HTLC and output back to A are present
+               // Revoke the old state
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage_4);
+               {
+                       let mut header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+                       {
+                               let mut node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                               assert_eq!(node_txn.len(), 3);
+                               assert_eq!(node_txn.pop().unwrap(), node_txn[0]); // An outpoint registration will result in a 2nd block_connected
+                               assert_eq!(node_txn[0].input.len(), 1); // We claim the received HTLC output
+
+                               check_spends!(node_txn[0], revoked_local_txn[0].clone());
+                               node_txn.swap_remove(0);
+                       }
+                       test_txn_broadcast(&nodes[0], &chan_6, None, HTLCType::NONE);
+
+                       nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+                       let node_txn = test_txn_broadcast(&nodes[1], &chan_6, Some(revoked_local_txn[0].clone()), HTLCType::SUCCESS);
+                       header = BlockHeader { version: 0x20000000, prev_blockhash: header.bitcoin_hash(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![node_txn[1].clone()] }, 1);
+                       test_revoked_htlc_claim_txn_broadcast(&nodes[0], node_txn[1].clone());
+               }
+               get_announce_close_broadcast_events(&nodes, 0, 1);
                assert_eq!(nodes[0].node.list_channels().len(), 0);
                assert_eq!(nodes[1].node.list_channels().len(), 0);
        }
@@ -5367,7 +5999,7 @@ mod tests {
                send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000);
                // node[0] is gonna to revoke an old state thus node[1] should be able to claim both offered/received HTLC outputs on top of commitment tx
                let payment_preimage_1 = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
-               let _payment_preimage_2 = route_payment(&nodes[1], &vec!(&nodes[0])[..], 3000000).0;
+               let (_payment_preimage_2, payment_hash_2) = route_payment(&nodes[1], &vec!(&nodes[0])[..], 3000000);
 
                // Get the will-be-revoked local txn from node[0]
                let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
@@ -5376,7 +6008,7 @@ mod tests {
                assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_1.3.txid());
                assert_eq!(revoked_local_txn[1].input.len(), 1);
                assert_eq!(revoked_local_txn[1].input[0].previous_output.txid, revoked_local_txn[0].txid());
-               assert_eq!(revoked_local_txn[1].input[0].witness.last().unwrap().len(), 133); // HTLC-Timeout
+               assert_eq!(revoked_local_txn[1].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT); // HTLC-Timeout
                check_spends!(revoked_local_txn[1], revoked_local_txn[0].clone());
 
                //Revoke the old state
@@ -5384,10 +6016,18 @@ mod tests {
 
                {
                        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-
                        nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
-
                        nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+
+                       let events = nodes[1].node.get_and_clear_pending_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               Event::PaymentFailed { payment_hash, .. } => {
+                                       assert_eq!(payment_hash, payment_hash_2);
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+
                        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
                        assert_eq!(node_txn.len(), 4);
 
@@ -5402,8 +6042,8 @@ mod tests {
                        witness_lens.insert(node_txn[0].input[2].witness.last().unwrap().len());
                        assert_eq!(witness_lens.len(), 3);
                        assert_eq!(*witness_lens.iter().skip(0).next().unwrap(), 77); // revoked to_local
-                       assert_eq!(*witness_lens.iter().skip(1).next().unwrap(), 133); // revoked offered HTLC
-                       assert_eq!(*witness_lens.iter().skip(2).next().unwrap(), 138); // revoked received HTLC
+                       assert_eq!(*witness_lens.iter().skip(1).next().unwrap(), OFFERED_HTLC_SCRIPT_WEIGHT); // revoked offered HTLC
+                       assert_eq!(*witness_lens.iter().skip(2).next().unwrap(), ACCEPTED_HTLC_SCRIPT_WEIGHT); // revoked received HTLC
 
                        // Next nodes[1] broadcasts its current local tx state:
                        assert_eq!(node_txn[1].input.len(), 1);
@@ -5411,7 +6051,7 @@ mod tests {
 
                        assert_eq!(node_txn[2].input.len(), 1);
                        let witness_script = node_txn[2].clone().input[0].witness.pop().unwrap();
-                       assert_eq!(witness_script.len(), 133); //Spending an offered htlc output
+                       assert_eq!(witness_script.len(), OFFERED_HTLC_SCRIPT_WEIGHT); //Spending an offered htlc output
                        assert_eq!(node_txn[2].input[0].previous_output.txid, node_txn[1].txid());
                        assert_ne!(node_txn[2].input[0].previous_output.txid, node_txn[0].input[0].previous_output.txid);
                        assert_ne!(node_txn[2].input[0].previous_output.txid, node_txn[0].input[1].previous_output.txid);
@@ -5433,7 +6073,7 @@ mod tests {
                // node[0] is gonna to revoke an old state thus node[1] should be able to claim both offered/received HTLC outputs on top of commitment tx, but this
                // time as two different claim transactions as we're gonna to timeout htlc with given a high current height
                let payment_preimage_1 = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
-               let _payment_preimage_2 = route_payment(&nodes[1], &vec!(&nodes[0])[..], 3000000).0;
+               let (_payment_preimage_2, payment_hash_2) = route_payment(&nodes[1], &vec!(&nodes[0])[..], 3000000);
 
                // Get the will-be-revoked local txn from node[0]
                let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
@@ -5443,10 +6083,18 @@ mod tests {
 
                {
                        let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-
                        nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
-
                        nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 200);
+
+                       let events = nodes[1].node.get_and_clear_pending_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               Event::PaymentFailed { payment_hash, .. } => {
+                                       assert_eq!(payment_hash, payment_hash_2);
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+
                        let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
                        assert_eq!(node_txn.len(), 12); // ChannelManager : 2, ChannelMontitor: 8 (1 standard revoked output, 2 revocation htlc tx, 1 local commitment tx + 1 htlc timeout tx) * 2 (block-rescan)
 
@@ -5474,15 +6122,15 @@ mod tests {
                        witness_lens.insert(node_txn[2].input[0].witness.last().unwrap().len());
                        assert_eq!(witness_lens.len(), 3);
                        assert_eq!(*witness_lens.iter().skip(0).next().unwrap(), 77); // revoked to_local
-                       assert_eq!(*witness_lens.iter().skip(1).next().unwrap(), 133); // revoked offered HTLC
-                       assert_eq!(*witness_lens.iter().skip(2).next().unwrap(), 138); // revoked received HTLC
+                       assert_eq!(*witness_lens.iter().skip(1).next().unwrap(), OFFERED_HTLC_SCRIPT_WEIGHT); // revoked offered HTLC
+                       assert_eq!(*witness_lens.iter().skip(2).next().unwrap(), ACCEPTED_HTLC_SCRIPT_WEIGHT); // revoked received HTLC
 
                        assert_eq!(node_txn[3].input.len(), 1);
                        check_spends!(node_txn[3], chan_1.3.clone());
 
                        assert_eq!(node_txn[4].input.len(), 1);
                        let witness_script = node_txn[4].input[0].witness.last().unwrap();
-                       assert_eq!(witness_script.len(), 133); //Spending an offered htlc output
+                       assert_eq!(witness_script.len(), OFFERED_HTLC_SCRIPT_WEIGHT); //Spending an offered htlc output
                        assert_eq!(node_txn[4].input[0].previous_output.txid, node_txn[3].txid());
                        assert_ne!(node_txn[4].input[0].previous_output.txid, node_txn[0].input[0].previous_output.txid);
                        assert_ne!(node_txn[4].input[0].previous_output.txid, node_txn[1].input[0].previous_output.txid);
@@ -5493,50 +6141,605 @@ mod tests {
        }
 
        #[test]
-       fn test_htlc_ignore_latest_remote_commitment() {
-               // Test that HTLC transactions spending the latest remote commitment transaction are simply
-               // ignored if we cannot claim them. This originally tickled an invalid unwrap().
-               let nodes = create_network(2);
-               create_announced_chan_between_nodes(&nodes, 0, 1);
-
-               route_payment(&nodes[0], &[&nodes[1]], 10000000);
-               nodes[0].node.force_close_channel(&nodes[0].node.list_channels()[0].channel_id);
-               {
-                       let events = nodes[0].node.get_and_clear_pending_msg_events();
-                       assert_eq!(events.len(), 1);
-                       match events[0] {
-                               MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { contents: msgs::UnsignedChannelUpdate { flags, .. }, .. } } => {
-                                       assert_eq!(flags & 0b10, 0b10);
-                               },
-                               _ => panic!("Unexpected event"),
-                       }
-               }
+       fn test_htlc_on_chain_success() {
+               // Test that in case of an unilateral close onchain, we detect the state of output thanks to
+               // ChainWatchInterface and pass the preimage backward accordingly. So here we test that ChannelManager is
+               // broadcasting the right event to other nodes in payment path.
+               // A --------------------> B ----------------------> C (preimage)
+               // First, C should claim the HTLC output via HTLC-Success when its own latest local
+               // commitment transaction was broadcast.
+               // Then, B should learn the preimage from said transactions, attempting to claim backwards
+               // towards B.
+               // B should be able to claim via preimage if A then broadcasts its local tx.
+               // Finally, when A sees B's latest local commitment transaction it should be able to claim
+               // the HTLC output via the preimage it learned (which, once confirmed should generate a
+               // PaymentSent event).
 
-               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
-               assert_eq!(node_txn.len(), 2);
+               let nodes = create_network(3);
 
-               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
-               nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0], &node_txn[1]], &[1; 2]);
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
 
+               // Rebalance the network a bit by relaying one payment through all the channels...
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+
+               let (our_payment_preimage, _payment_hash) = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2]), 3000000);
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
+
+               // Broadcast legit commitment tx from C on B's chain
+               // Broadcast HTLC Success transation by C on received output from C's commitment tx on B's chain
+               let commitment_tx = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(commitment_tx.len(), 1);
+               check_spends!(commitment_tx[0], chan_2.3.clone());
+               nodes[2].node.claim_funds(our_payment_preimage);
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+
+               nodes[2].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+               let events = nodes[2].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 1 (commitment tx), ChannelMonitor : 2 (2 * HTLC-Success tx)
+               assert_eq!(node_txn.len(), 3);
+               assert_eq!(node_txn[1], commitment_tx[0]);
+               assert_eq!(node_txn[0], node_txn[2]);
+               check_spends!(node_txn[0], commitment_tx[0].clone());
+               assert_eq!(node_txn[0].input[0].witness.clone().last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               assert!(node_txn[0].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+               assert_eq!(node_txn[0].lock_time, 0);
+
+               // Verify that B's ChannelManager is able to extract preimage from HTLC Success tx and pass it backward
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: node_txn}, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
                {
-                       let events = nodes[1].node.get_and_clear_pending_msg_events();
-                       assert_eq!(events.len(), 1);
-                       match events[0] {
-                               MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { contents: msgs::UnsignedChannelUpdate { flags, .. }, .. } } => {
-                                       assert_eq!(flags & 0b10, 0b10);
-                               },
-                               _ => panic!("Unexpected event"),
-                       }
+                       let mut added_monitors = nodes[1].chan_monitor.added_monitors.lock().unwrap();
+                       assert_eq!(added_monitors.len(), 1);
+                       assert_eq!(added_monitors[0].0.txid, chan_1.3.txid());
+                       added_monitors.clear();
                }
+               assert_eq!(events.len(), 2);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, ref update_fulfill_htlcs, ref update_fail_malformed_htlcs, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert!(update_fail_htlcs.is_empty());
+                               assert_eq!(update_fulfill_htlcs.len(), 1);
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[0].node.get_our_node_id(), *node_id);
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+               {
+                       // nodes[1] now broadcasts its own local state as a fallback, suggesting an alternate
+                       // commitment transaction with a corresponding HTLC-Timeout transaction, as well as a
+                       // timeout-claim of the output that nodes[2] just claimed via success.
+                       let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap(); // ChannelManager : 2 (commitment tx, HTLC-Timeout tx), ChannelMonitor : 1 (timeout tx) * 2 (block-rescan)
+                       assert_eq!(node_txn.len(), 4);
+                       assert_eq!(node_txn[0], node_txn[3]);
+                       check_spends!(node_txn[0], commitment_tx[0].clone());
+                       assert_eq!(node_txn[0].input[0].witness.clone().last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+                       assert_ne!(node_txn[0].lock_time, 0);
+                       assert!(node_txn[0].output[0].script_pubkey.is_v0_p2wpkh()); // direct payment
+                       check_spends!(node_txn[1], chan_2.3.clone());
+                       check_spends!(node_txn[2], node_txn[1].clone());
+                       assert_eq!(node_txn[1].input[0].witness.clone().last().unwrap().len(), 71);
+                       assert_eq!(node_txn[2].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+                       assert!(node_txn[2].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+                       assert_ne!(node_txn[2].lock_time, 0);
+                       node_txn.clear();
+               }
+
+               // Broadcast legit commitment tx from A on B's chain
+               // Broadcast preimage tx by B on offered output from A commitment tx  on A's chain
+               let commitment_tx = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               check_spends!(commitment_tx[0], chan_1.3.clone());
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 1 (commitment tx), ChannelMonitor : 1 (HTLC-Success) * 2 (block-rescan)
+               assert_eq!(node_txn.len(), 3);
+               assert_eq!(node_txn[0], node_txn[2]);
+               check_spends!(node_txn[0], commitment_tx[0].clone());
+               assert_eq!(node_txn[0].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert_eq!(node_txn[0].lock_time, 0);
+               assert!(node_txn[0].output[0].script_pubkey.is_v0_p2wpkh()); // direct payment
+               check_spends!(node_txn[1], chan_1.3.clone());
+               assert_eq!(node_txn[1].input[0].witness.clone().last().unwrap().len(), 71);
+               // We don't bother to check that B can claim the HTLC output on its commitment tx here as
+               // we already checked the same situation with A.
 
-               // Duplicate the block_connected call since this may happen due to other listeners
-               // registering new transactions
-               nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0], &node_txn[1]], &[1; 2]);
-       }
-
-       #[test]
-       fn test_force_close_fail_back() {
-               // Check which HTLCs are failed-backwards on channel force-closure
+               // Verify that A's ChannelManager is able to extract preimage from preimage tx and generate PaymentSent
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone(), node_txn[0].clone()] }, 1);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentSent { payment_preimage } => {
+                               assert_eq!(payment_preimage, our_payment_preimage);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 2 (commitment tx, HTLC-Timeout tx), ChannelMonitor : 1 (HTLC-Timeout tx) * 2 (block-rescan)
+               assert_eq!(node_txn.len(), 4);
+               assert_eq!(node_txn[0], node_txn[3]);
+               check_spends!(node_txn[0], commitment_tx[0].clone());
+               assert_eq!(node_txn[0].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert_ne!(node_txn[0].lock_time, 0);
+               assert!(node_txn[0].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+               check_spends!(node_txn[1], chan_1.3.clone());
+               check_spends!(node_txn[2], node_txn[1].clone());
+               assert_eq!(node_txn[1].input[0].witness.clone().last().unwrap().len(), 71);
+               assert_eq!(node_txn[2].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert!(node_txn[2].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+               assert_ne!(node_txn[2].lock_time, 0);
+       }
+
+       #[test]
+       fn test_htlc_on_chain_timeout() {
+               // Test that in case of an unilateral close onchain, we detect the state of output thanks to
+               // ChainWatchInterface and timeout the HTLC  bacward accordingly. So here we test that ChannelManager is
+               // broadcasting the right event to other nodes in payment path.
+               // A ------------------> B ----------------------> C (timeout)
+               //    B's commitment tx                 C's commitment tx
+               //            \                                  \
+               //         B's HTLC timeout tx               B's timeout tx
+
+               let nodes = create_network(3);
+
+               // Create some intial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               // Rebalance the network a bit by relaying one payment thorugh all the channels...
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+
+               let (_payment_preimage, payment_hash) = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2]), 3000000);
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
+
+               // Brodacast legit commitment tx from C on B's chain
+               let commitment_tx = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               check_spends!(commitment_tx[0], chan_2.3.clone());
+               nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               {
+                       let mut added_monitors = nodes[2].chan_monitor.added_monitors.lock().unwrap();
+                       assert_eq!(added_monitors.len(), 1);
+                       added_monitors.clear();
+               }
+               let events = nodes[2].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fulfill_htlcs, ref update_fail_htlcs, ref update_fail_malformed_htlcs, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert!(!update_fail_htlcs.is_empty());
+                               assert!(update_fulfill_htlcs.is_empty());
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[1].node.get_our_node_id(), *node_id);
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+               nodes[2].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+               let events = nodes[2].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { .. } } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 1 (commitment tx)
+               assert_eq!(node_txn.len(), 1);
+               check_spends!(node_txn[0], chan_2.3.clone());
+               assert_eq!(node_txn[0].input[0].witness.last().unwrap().len(), 71);
+
+               // Broadcast timeout transaction by B on received output fron C's commitment tx on B's chain
+               // Verify that B's ChannelManager is able to detect that HTLC is timeout by its own tx and react backward in consequence
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
+               let timeout_tx;
+               {
+                       let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                       assert_eq!(node_txn.len(), 8); // ChannelManager : 2 (commitment tx, HTLC-Timeout tx), ChannelMonitor : 6 (HTLC-Timeout tx, commitment tx, timeout tx) * 2 (block-rescan)
+                       assert_eq!(node_txn[0], node_txn[5]);
+                       assert_eq!(node_txn[1], node_txn[6]);
+                       assert_eq!(node_txn[2], node_txn[7]);
+                       check_spends!(node_txn[0], commitment_tx[0].clone());
+                       assert_eq!(node_txn[0].clone().input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+                       check_spends!(node_txn[1], chan_2.3.clone());
+                       check_spends!(node_txn[2], node_txn[1].clone());
+                       assert_eq!(node_txn[1].clone().input[0].witness.last().unwrap().len(), 71);
+                       assert_eq!(node_txn[2].clone().input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+                       check_spends!(node_txn[3], chan_2.3.clone());
+                       check_spends!(node_txn[4], node_txn[3].clone());
+                       assert_eq!(node_txn[3].input[0].witness.clone().last().unwrap().len(), 71);
+                       assert_eq!(node_txn[4].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+                       timeout_tx = node_txn[0].clone();
+                       node_txn.clear();
+               }
+
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![timeout_tx]}, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               check_added_monitors!(nodes[1], 1);
+               assert_eq!(events.len(), 2);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { .. } } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, ref update_fulfill_htlcs, ref update_fail_malformed_htlcs, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert!(!update_fail_htlcs.is_empty());
+                               assert!(update_fulfill_htlcs.is_empty());
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[0].node.get_our_node_id(), *node_id);
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // Well... here we detect our own htlc_timeout_tx so no tx to be generated
+               assert_eq!(node_txn.len(), 0);
+
+               // Broadcast legit commitment tx from B on A's chain
+               let commitment_tx = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               check_spends!(commitment_tx[0], chan_1.3.clone());
+
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 200);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { .. } } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 2 (commitment tx, HTLC-Timeout tx), ChannelMonitor : 2 (timeout tx) * 2 block-rescan
+               assert_eq!(node_txn.len(), 4);
+               assert_eq!(node_txn[0], node_txn[3]);
+               check_spends!(node_txn[0], commitment_tx[0].clone());
+               assert_eq!(node_txn[0].clone().input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(node_txn[1], chan_1.3.clone());
+               check_spends!(node_txn[2], node_txn[1].clone());
+               assert_eq!(node_txn[1].clone().input[0].witness.last().unwrap().len(), 71);
+               assert_eq!(node_txn[2].clone().input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+       }
+
+       #[test]
+       fn test_simple_commitment_revoked_fail_backward() {
+               // Test that in case of a revoked commitment tx, we detect the resolution of output by justice tx
+               // and fail backward accordingly.
+
+               let nodes = create_network(3);
+
+               // Create some initial channels
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let (payment_preimage, _payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+               // Get the will-be-revoked local txn from nodes[2]
+               let revoked_local_txn = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               // Revoke the old state
+               claim_payment(&nodes[0], &[&nodes[1], &nodes[2]], payment_preimage);
+
+               route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               check_added_monitors!(nodes[1], 1);
+               assert_eq!(events.len(), 2);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { .. } } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, ref update_fulfill_htlcs, ref update_fail_malformed_htlcs, ref commitment_signed, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert_eq!(update_fail_htlcs.len(), 1);
+                               assert!(update_fulfill_htlcs.is_empty());
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[0].node.get_our_node_id(), *node_id);
+
+                               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &update_fail_htlcs[0]).unwrap();
+                               commitment_signed_dance!(nodes[0], nodes[1], commitment_signed, false, true);
+
+                               let events = nodes[0].node.get_and_clear_pending_msg_events();
+                               assert_eq!(events.len(), 1);
+                               match events[0] {
+                                       MessageSendEvent::PaymentFailureNetworkUpdate { .. } => {},
+                                       _ => panic!("Unexpected event"),
+                               }
+                               let events = nodes[0].node.get_and_clear_pending_events();
+                               assert_eq!(events.len(), 1);
+                               match events[0] {
+                                       Event::PaymentFailed { .. } => {},
+                                       _ => panic!("Unexpected event"),
+                               }
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       fn do_test_commitment_revoked_fail_backward_exhaustive(deliver_bs_raa: bool) {
+               // Test that if our counterparty broadcasts a revoked commitment transaction we fail all
+               // pending HTLCs on that channel backwards even if the HTLCs aren't present in our latest
+               // commitment transaction anymore.
+               // To do this, we have the peer which will broadcast a revoked commitment transaction send
+               // a number of update_fail/commitment_signed updates without ever sending the RAA in
+               // response to our commitment_signed. This is somewhat misbehavior-y, though not
+               // technically disallowed and we should probably handle it reasonably.
+               // Note that this is pretty exhaustive as an outbound HTLC which we haven't yet
+               // failed/fulfilled backwards must be in at least one of the latest two remote commitment
+               // transactions:
+               // * Once we move it out of our holding cell/add it, we will immediately include it in a
+               //   commitment_signed (implying it will be in the latest remote commitment transaction).
+               // * Once they remove it, we will send a (the first) commitment_signed without the HTLC,
+               //   and once they revoke the previous commitment transaction (allowing us to send a new
+               //   commitment_signed) we will be free to fail/fulfill the HTLC backwards.
+               let mut nodes = create_network(3);
+
+               // Create some initial channels
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let (payment_preimage, _payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+               // Get the will-be-revoked local txn from nodes[2]
+               let revoked_local_txn = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               // Revoke the old state
+               claim_payment(&nodes[0], &[&nodes[1], &nodes[2]], payment_preimage);
+
+               let (_, first_payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+               let (_, second_payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+               let (_, third_payment_hash) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 3000000);
+
+               assert!(nodes[2].node.fail_htlc_backwards(&first_payment_hash, 0));
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert_eq!(updates.update_fail_htlcs.len(), 1);
+               assert!(updates.update_fee.is_none());
+               nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+               let bs_raa = commitment_signed_dance!(nodes[1], nodes[2], updates.commitment_signed, false, true, false, true);
+               // Drop the last RAA from 3 -> 2
+
+               assert!(nodes[2].node.fail_htlc_backwards(&second_payment_hash, 0));
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert_eq!(updates.update_fail_htlcs.len(), 1);
+               assert!(updates.update_fee.is_none());
+               nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+               nodes[1].node.handle_commitment_signed(&nodes[2].node.get_our_node_id(), &updates.commitment_signed).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               // Note that nodes[1] is in AwaitingRAA, so won't send a CS
+               let as_raa = get_event_msg!(nodes[1], MessageSendEvent::SendRevokeAndACK, nodes[2].node.get_our_node_id());
+               nodes[2].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &as_raa).unwrap();
+               check_added_monitors!(nodes[2], 1);
+
+               assert!(nodes[2].node.fail_htlc_backwards(&third_payment_hash, 0));
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert_eq!(updates.update_fail_htlcs.len(), 1);
+               assert!(updates.update_fee.is_none());
+               nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+               // At this point first_payment_hash has dropped out of the latest two commitment
+               // transactions that nodes[1] is tracking...
+               nodes[1].node.handle_commitment_signed(&nodes[2].node.get_our_node_id(), &updates.commitment_signed).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               // Note that nodes[1] is (still) in AwaitingRAA, so won't send a CS
+               let as_raa = get_event_msg!(nodes[1], MessageSendEvent::SendRevokeAndACK, nodes[2].node.get_our_node_id());
+               nodes[2].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &as_raa).unwrap();
+               check_added_monitors!(nodes[2], 1);
+
+               // Add a fourth HTLC, this one will get sequestered away in nodes[1]'s holding cell waiting
+               // on nodes[2]'s RAA.
+               let route = nodes[1].router.get_route(&nodes[2].node.get_our_node_id(), None, &Vec::new(), 1000000, TEST_FINAL_CLTV).unwrap();
+               let (_, fourth_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+               nodes[1].node.send_payment(route, fourth_payment_hash).unwrap();
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+               assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
+               check_added_monitors!(nodes[1], 0);
+
+               if deliver_bs_raa {
+                       nodes[1].node.handle_revoke_and_ack(&nodes[2].node.get_our_node_id(), &bs_raa).unwrap();
+                       // One monitor for the new revocation preimage, one as we generate a commitment for
+                       // nodes[0] to fail first_payment_hash backwards.
+                       check_added_monitors!(nodes[1], 2);
+               }
+
+               let mut failed_htlcs = HashSet::new();
+               assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+
+               let events = nodes[1].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentFailed { ref payment_hash, .. } => {
+                               assert_eq!(*payment_hash, fourth_payment_hash);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               if !deliver_bs_raa {
+                       // If we delivered the RAA already then we already failed first_payment_hash backwards.
+                       check_added_monitors!(nodes[1], 1);
+               }
+
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), if deliver_bs_raa { 3 } else { 2 });
+               match events[if deliver_bs_raa { 2 } else { 0 }] {
+                       MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { .. } } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               if deliver_bs_raa {
+                       match events[0] {
+                               MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, ref update_fulfill_htlcs, ref update_fail_malformed_htlcs, .. } } => {
+                                       assert_eq!(nodes[2].node.get_our_node_id(), *node_id);
+                                       assert_eq!(update_add_htlcs.len(), 1);
+                                       assert!(update_fulfill_htlcs.is_empty());
+                                       assert!(update_fail_htlcs.is_empty());
+                                       assert!(update_fail_malformed_htlcs.is_empty());
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+               }
+               // Due to the way backwards-failing occurs we do the updates in two steps.
+               let updates = match events[1] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fail_htlcs, ref update_fulfill_htlcs, ref update_fail_malformed_htlcs, ref commitment_signed, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert_eq!(update_fail_htlcs.len(), 1);
+                               assert!(update_fulfill_htlcs.is_empty());
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[0].node.get_our_node_id(), *node_id);
+
+                               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &update_fail_htlcs[0]).unwrap();
+                               nodes[0].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), commitment_signed).unwrap();
+                               check_added_monitors!(nodes[0], 1);
+                               let (as_revoke_and_ack, as_commitment_signed) = get_revoke_commit_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+                               nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &as_revoke_and_ack).unwrap();
+                               check_added_monitors!(nodes[1], 1);
+                               let bs_second_update = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+                               nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &as_commitment_signed).unwrap();
+                               check_added_monitors!(nodes[1], 1);
+                               let bs_revoke_and_ack = get_event_msg!(nodes[1], MessageSendEvent::SendRevokeAndACK, nodes[0].node.get_our_node_id());
+                               nodes[0].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &bs_revoke_and_ack).unwrap();
+                               check_added_monitors!(nodes[0], 1);
+
+                               if !deliver_bs_raa {
+                                       // If we delievered B's RAA we got an unknown preimage error, not something
+                                       // that we should update our routing table for.
+                                       let events = nodes[0].node.get_and_clear_pending_msg_events();
+                                       assert_eq!(events.len(), 1);
+                                       match events[0] {
+                                               MessageSendEvent::PaymentFailureNetworkUpdate { .. } => {},
+                                               _ => panic!("Unexpected event"),
+                                       }
+                               }
+                               let events = nodes[0].node.get_and_clear_pending_events();
+                               assert_eq!(events.len(), 1);
+                               match events[0] {
+                                       Event::PaymentFailed { ref payment_hash, .. } => {
+                                               assert!(failed_htlcs.insert(payment_hash.0));
+                                       },
+                                       _ => panic!("Unexpected event"),
+                               }
+
+                               bs_second_update
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+
+               assert!(updates.update_add_htlcs.is_empty());
+               assert_eq!(updates.update_fail_htlcs.len(), 2);
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fail_htlcs[1]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], updates.commitment_signed, false, true);
+
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 2);
+               for event in events {
+                       match event {
+                               MessageSendEvent::PaymentFailureNetworkUpdate { .. } => {},
+                               _ => panic!("Unexpected event"),
+                       }
+               }
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 2);
+               match events[0] {
+                       Event::PaymentFailed { ref payment_hash, .. } => {
+                               assert!(failed_htlcs.insert(payment_hash.0));
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       Event::PaymentFailed { ref payment_hash, .. } => {
+                               assert!(failed_htlcs.insert(payment_hash.0));
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               assert!(failed_htlcs.contains(&first_payment_hash.0));
+               assert!(failed_htlcs.contains(&second_payment_hash.0));
+               assert!(failed_htlcs.contains(&third_payment_hash.0));
+       }
+
+       #[test]
+       fn test_commitment_revoked_fail_backward_exhaustive() {
+               do_test_commitment_revoked_fail_backward_exhaustive(false);
+               do_test_commitment_revoked_fail_backward_exhaustive(true);
+       }
+
+       #[test]
+       fn test_htlc_ignore_latest_remote_commitment() {
+               // Test that HTLC transactions spending the latest remote commitment transaction are simply
+               // ignored if we cannot claim them. This originally tickled an invalid unwrap().
+               let nodes = create_network(2);
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               route_payment(&nodes[0], &[&nodes[1]], 10000000);
+               nodes[0].node.force_close_channel(&nodes[0].node.list_channels()[0].channel_id);
+               {
+                       let events = nodes[0].node.get_and_clear_pending_msg_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { contents: msgs::UnsignedChannelUpdate { flags, .. }, .. } } => {
+                                       assert_eq!(flags & 0b10, 0b10);
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+               }
+
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 2);
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0], &node_txn[1]], &[1; 2]);
+
+               {
+                       let events = nodes[1].node.get_and_clear_pending_msg_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               MessageSendEvent::BroadcastChannelUpdate { msg: msgs::ChannelUpdate { contents: msgs::UnsignedChannelUpdate { flags, .. }, .. } } => {
+                                       assert_eq!(flags & 0b10, 0b10);
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+               }
+
+               // Duplicate the block_connected call since this may happen due to other listeners
+               // registering new transactions
+               nodes[1].chain_monitor.block_connected_checked(&header, 1, &[&node_txn[0], &node_txn[1]], &[1; 2]);
+       }
+
+       #[test]
+       fn test_force_close_fail_back() {
+               // Check which HTLCs are failed-backwards on channel force-closure
                let mut nodes = create_network(3);
                create_announced_chan_between_nodes(&nodes, 0, 1);
                create_announced_chan_between_nodes(&nodes, 1, 2);
@@ -5741,12 +6944,37 @@ mod tests {
 
        /// pending_htlc_adds includes both the holding cell and in-flight update_add_htlcs, whereas
        /// for claims/fails they are separated out.
-       fn reconnect_nodes(node_a: &Node, node_b: &Node, pre_all_htlcs: bool, pending_htlc_adds: (i64, i64), pending_htlc_claims: (usize, usize), pending_cell_htlc_claims: (usize, usize), pending_cell_htlc_fails: (usize, usize), pending_raa: (bool, bool)) {
+       fn reconnect_nodes(node_a: &Node, node_b: &Node, send_funding_locked: (bool, bool), pending_htlc_adds: (i64, i64), pending_htlc_claims: (usize, usize), pending_cell_htlc_claims: (usize, usize), pending_cell_htlc_fails: (usize, usize), pending_raa: (bool, bool)) {
                node_a.node.peer_connected(&node_b.node.get_our_node_id());
                let reestablish_1 = get_chan_reestablish_msgs!(node_a, node_b);
                node_b.node.peer_connected(&node_a.node.get_our_node_id());
                let reestablish_2 = get_chan_reestablish_msgs!(node_b, node_a);
 
+               if send_funding_locked.0 {
+                       // If a expects a funding_locked, it better not think it has received a revoke_and_ack
+                       // from b
+                       for reestablish in reestablish_1.iter() {
+                               assert_eq!(reestablish.next_remote_commitment_number, 0);
+                       }
+               }
+               if send_funding_locked.1 {
+                       // If b expects a funding_locked, it better not think it has received a revoke_and_ack
+                       // from a
+                       for reestablish in reestablish_2.iter() {
+                               assert_eq!(reestablish.next_remote_commitment_number, 0);
+                       }
+               }
+               if send_funding_locked.0 || send_funding_locked.1 {
+                       // If we expect any funding_locked's, both sides better have set
+                       // next_local_commitment_number to 1
+                       for reestablish in reestablish_1.iter() {
+                               assert_eq!(reestablish.next_local_commitment_number, 1);
+                       }
+                       for reestablish in reestablish_2.iter() {
+                               assert_eq!(reestablish.next_local_commitment_number, 1);
+                       }
+               }
+
                let mut resp_1 = Vec::new();
                for msg in reestablish_1 {
                        node_b.node.handle_channel_reestablish(&node_a.node.get_our_node_id(), &msg).unwrap();
@@ -5774,7 +7002,7 @@ mod tests {
                        (pending_htlc_adds.1 == 0 && pending_htlc_claims.1 == 0 && pending_cell_htlc_claims.1 == 0 && pending_cell_htlc_fails.1 == 0));
 
                for chan_msgs in resp_1.drain(..) {
-                       if pre_all_htlcs {
+                       if send_funding_locked.0 {
                                node_a.node.handle_funding_locked(&node_b.node.get_our_node_id(), &chan_msgs.0.unwrap()).unwrap();
                                let announcement_event = node_a.node.get_and_clear_pending_msg_events();
                                if !announcement_event.is_empty() {
@@ -5831,7 +7059,7 @@ mod tests {
                }
 
                for chan_msgs in resp_2.drain(..) {
-                       if pre_all_htlcs {
+                       if send_funding_locked.1 {
                                node_b.node.handle_funding_locked(&node_a.node.get_our_node_id(), &chan_msgs.0.unwrap()).unwrap();
                                let announcement_event = node_b.node.get_and_clear_pending_msg_events();
                                if !announcement_event.is_empty() {
@@ -5895,7 +7123,7 @@ mod tests {
 
                nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-               reconnect_nodes(&nodes[0], &nodes[1], true, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (true, true), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                let payment_preimage_1 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 1000000).0;
                let payment_hash_2 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 1000000).1;
@@ -5904,7 +7132,7 @@ mod tests {
 
                nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                let payment_preimage_3 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 1000000).0;
                let payment_preimage_4 = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 1000000).0;
@@ -5917,7 +7145,7 @@ mod tests {
                claim_payment_along_route(&nodes[0], &vec!(&nodes[1], &nodes[2]), true, payment_preimage_3);
                fail_payment_along_route(&nodes[0], &[&nodes[1], &nodes[2]], true, payment_hash_5);
 
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (1, 0), (1, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (1, 0), (1, 0), (false, false));
                {
                        let events = nodes[0].node.get_and_clear_pending_events();
                        assert_eq!(events.len(), 2);
@@ -5928,7 +7156,7 @@ mod tests {
                                _ => panic!("Unexpected event"),
                        }
                        match events[1] {
-                               Event::PaymentFailed { payment_hash, rejected_by_dest } => {
+                               Event::PaymentFailed { payment_hash, rejected_by_dest, .. } => {
                                        assert_eq!(payment_hash, payment_hash_5);
                                        assert!(rejected_by_dest);
                                },
@@ -5998,19 +7226,19 @@ mod tests {
                if messages_delivered < 3 {
                        // Even if the funding_locked messages get exchanged, as long as nothing further was
                        // received on either side, both sides will need to resend them.
-                       reconnect_nodes(&nodes[0], &nodes[1], true, (0, 1), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (true, true), (0, 1), (0, 0), (0, 0), (0, 0), (false, false));
                } else if messages_delivered == 3 {
                        // nodes[0] still wants its RAA + commitment_signed
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (-1, 0), (0, 0), (0, 0), (0, 0), (true, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (-1, 0), (0, 0), (0, 0), (0, 0), (true, false));
                } else if messages_delivered == 4 {
                        // nodes[0] still wants its commitment_signed
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (-1, 0), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (-1, 0), (0, 0), (0, 0), (0, 0), (false, false));
                } else if messages_delivered == 5 {
                        // nodes[1] still wants its final RAA
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, true));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, true));
                } else if messages_delivered == 6 {
                        // Everything was delivered...
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
                }
 
                let events_1 = nodes[1].node.get_and_clear_pending_events();
@@ -6022,7 +7250,7 @@ mod tests {
 
                nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                nodes[1].node.channel_state.lock().unwrap().next_forward = Instant::now();
                nodes[1].node.process_pending_htlc_forwards();
@@ -6096,7 +7324,7 @@ mod tests {
                nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
                if messages_delivered < 2 {
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (1, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (1, 0), (0, 0), (0, 0), (false, false));
                        //TODO: Deduplicate PaymentSent events, then enable this if:
                        //if messages_delivered < 1 {
                                let events_4 = nodes[0].node.get_and_clear_pending_events();
@@ -6110,21 +7338,21 @@ mod tests {
                        //}
                } else if messages_delivered == 2 {
                        // nodes[0] still wants its RAA + commitment_signed
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, -1), (0, 0), (0, 0), (0, 0), (false, true));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, -1), (0, 0), (0, 0), (0, 0), (false, true));
                } else if messages_delivered == 3 {
                        // nodes[0] still wants its commitment_signed
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, -1), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, -1), (0, 0), (0, 0), (0, 0), (false, false));
                } else if messages_delivered == 4 {
                        // nodes[1] still wants its final RAA
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (true, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (true, false));
                } else if messages_delivered == 5 {
                        // Everything was delivered...
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
                }
 
                nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                // Channel should still work fine...
                let payment_preimage_2 = send_along_route(&nodes[0], route, &[&nodes[1]], 1000000).0;
@@ -6165,20 +7393,28 @@ mod tests {
                        _ => panic!("Unexpected event"),
                }
 
+               reconnect_nodes(&nodes[0], &nodes[1], (false, true), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+
+               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
+
                confirm_transaction(&nodes[1].chain_monitor, &tx, tx.version);
                let events_2 = nodes[1].node.get_and_clear_pending_msg_events();
-               assert_eq!(events_2.len(), 1);
+               assert_eq!(events_2.len(), 2);
                match events_2[0] {
                        MessageSendEvent::SendFundingLocked { ref node_id, msg: _ } => {
                                assert_eq!(*node_id, nodes[0].node.get_our_node_id());
                        },
                        _ => panic!("Unexpected event"),
                }
+               match events_2[1] {
+                       MessageSendEvent::SendAnnouncementSignatures { ref node_id, msg: _ } => {
+                               assert_eq!(*node_id, nodes[0].node.get_our_node_id());
+                       },
+                       _ => panic!("Unexpected event"),
+               }
 
-               reconnect_nodes(&nodes[0], &nodes[1], true, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
-               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
-               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-               reconnect_nodes(&nodes[0], &nodes[1], true, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (true, true), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                // TODO: We shouldn't need to manually pass list_usable_chanels here once we support
                // rebroadcasting announcement_signatures upon reconnect.
@@ -6345,15 +7581,19 @@ mod tests {
                let (_, payment_hash_1) = get_payment_preimage_hash!(nodes[0]);
 
                *nodes[0].chan_monitor.update_ret.lock().unwrap() = Err(ChannelMonitorUpdateErr::PermanentFailure);
-               if let Err(APIError::MonitorUpdateFailed) = nodes[0].node.send_payment(route, payment_hash_1) {} else { panic!(); }
+               if let Err(APIError::ChannelUnavailable {..}) = nodes[0].node.send_payment(route, payment_hash_1) {} else { panic!(); }
                check_added_monitors!(nodes[0], 1);
 
                let events_1 = nodes[0].node.get_and_clear_pending_msg_events();
-               assert_eq!(events_1.len(), 1);
+               assert_eq!(events_1.len(), 2);
                match events_1[0] {
                        MessageSendEvent::BroadcastChannelUpdate { .. } => {},
                        _ => panic!("Unexpected event"),
                };
+               match events_1[1] {
+                       MessageSendEvent::HandleError { node_id, .. } => assert_eq!(node_id, nodes[1].node.get_our_node_id()),
+                       _ => panic!("Unexpected event"),
+               };
 
                // TODO: Once we hit the chain with the failure transaction we should check that we get a
                // PaymentFailed event
@@ -6381,7 +7621,7 @@ mod tests {
                if disconnect {
                        nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                        nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-                       reconnect_nodes(&nodes[0], &nodes[1], true, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (true, true), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
                }
 
                *nodes[0].chan_monitor.update_ret.lock().unwrap() = Ok(());
@@ -6422,7 +7662,7 @@ mod tests {
                if disconnect {
                        nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
                        nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
-                       reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+                       reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
                }
 
                // ...and make sure we can force-close a TemporaryFailure channel with a PermanentFailure
@@ -6793,10 +8033,450 @@ mod tests {
        }
 
        #[test]
-       fn test_invalid_channel_announcement() {
-               //Test BOLT 7 channel_announcement msg requirement for final node, gather data to build customed channel_announcement msgs
-               let secp_ctx = Secp256k1::new();
-               let nodes = create_network(2);
+       fn test_monitor_update_fail_cs() {
+               // Tests handling of a monitor update failure when processing an incoming commitment_signed
+               let mut nodes = create_network(2);
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let route = nodes[0].router.get_route(&nodes[1].node.get_our_node_id(), None, &Vec::new(), 1000000, TEST_FINAL_CLTV).unwrap();
+               let (payment_preimage, our_payment_hash) = get_payment_preimage_hash!(nodes[0]);
+               nodes[0].node.send_payment(route, our_payment_hash).unwrap();
+               check_added_monitors!(nodes[0], 1);
+
+               let send_event = SendEvent::from_event(nodes[0].node.get_and_clear_pending_msg_events().remove(0));
+               nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &send_event.msgs[0]).unwrap();
+
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Err(ChannelMonitorUpdateErr::TemporaryFailure);
+               if let msgs::HandleError { err, action: Some(msgs::ErrorAction::IgnoreError) } = nodes[1].node.handle_commitment_signed(&nodes[0].node.get_our_node_id(), &send_event.commitment_msg).unwrap_err() {
+                       assert_eq!(err, "Failed to update ChannelMonitor");
+               } else { panic!(); }
+               check_added_monitors!(nodes[1], 1);
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Ok(());
+               nodes[1].node.test_restore_channel_monitor();
+               check_added_monitors!(nodes[1], 1);
+               let responses = nodes[1].node.get_and_clear_pending_msg_events();
+               assert_eq!(responses.len(), 2);
+
+               match responses[0] {
+                       MessageSendEvent::SendRevokeAndACK { ref msg, ref node_id } => {
+                               assert_eq!(*node_id, nodes[0].node.get_our_node_id());
+                               nodes[0].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &msg).unwrap();
+                               check_added_monitors!(nodes[0], 1);
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+               match responses[1] {
+                       MessageSendEvent::UpdateHTLCs { ref updates, ref node_id } => {
+                               assert!(updates.update_add_htlcs.is_empty());
+                               assert!(updates.update_fulfill_htlcs.is_empty());
+                               assert!(updates.update_fail_htlcs.is_empty());
+                               assert!(updates.update_fail_malformed_htlcs.is_empty());
+                               assert!(updates.update_fee.is_none());
+                               assert_eq!(*node_id, nodes[0].node.get_our_node_id());
+
+                               *nodes[0].chan_monitor.update_ret.lock().unwrap() = Err(ChannelMonitorUpdateErr::TemporaryFailure);
+                               if let msgs::HandleError { err, action: Some(msgs::ErrorAction::IgnoreError) } = nodes[0].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), &updates.commitment_signed).unwrap_err() {
+                                       assert_eq!(err, "Failed to update ChannelMonitor");
+                               } else { panic!(); }
+                               check_added_monitors!(nodes[0], 1);
+                               assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
+                       },
+                       _ => panic!("Unexpected event"),
+               }
+
+               *nodes[0].chan_monitor.update_ret.lock().unwrap() = Ok(());
+               nodes[0].node.test_restore_channel_monitor();
+               check_added_monitors!(nodes[0], 1);
+
+               let final_raa = get_event_msg!(nodes[0], MessageSendEvent::SendRevokeAndACK, nodes[1].node.get_our_node_id());
+               nodes[1].node.handle_revoke_and_ack(&nodes[0].node.get_our_node_id(), &final_raa).unwrap();
+               check_added_monitors!(nodes[1], 1);
+
+               let mut events = nodes[1].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PendingHTLCsForwardable { .. } => { },
+                       _ => panic!("Unexpected event"),
+               };
+               nodes[1].node.channel_state.lock().unwrap().next_forward = Instant::now();
+               nodes[1].node.process_pending_htlc_forwards();
+
+               events = nodes[1].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentReceived { payment_hash, amt } => {
+                               assert_eq!(payment_hash, our_payment_hash);
+                               assert_eq!(amt, 1000000);
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+
+               claim_payment(&nodes[0], &[&nodes[1]], payment_preimage);
+       }
+
+       fn do_test_monitor_update_fail_raa(test_ignore_second_cs: bool) {
+               // Tests handling of a monitor update failure when processing an incoming RAA
+               let mut nodes = create_network(3);
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               // Rebalance a bit so that we can send backwards from 2 to 1.
+               send_payment(&nodes[0], &[&nodes[1], &nodes[2]], 5000000);
+
+               // Route a first payment that we'll fail backwards
+               let (_, payment_hash_1) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 1000000);
+
+               // Fail the payment backwards, failing the monitor update on nodes[1]'s receipt of the RAA
+               assert!(nodes[2].node.fail_htlc_backwards(&payment_hash_1, 0));
+               check_added_monitors!(nodes[2], 1);
+
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fulfill_htlcs.is_empty());
+               assert_eq!(updates.update_fail_htlcs.len(), 1);
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+               nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+
+               let bs_revoke_and_ack = commitment_signed_dance!(nodes[1], nodes[2], updates.commitment_signed, false, true, false, true);
+               check_added_monitors!(nodes[0], 0);
+
+               // While the second channel is AwaitingRAA, forward a second payment to get it into the
+               // holding cell.
+               let (payment_preimage_2, payment_hash_2) = get_payment_preimage_hash!(nodes[0]);
+               let route = nodes[0].router.get_route(&nodes[2].node.get_our_node_id(), None, &Vec::new(), 1000000, TEST_FINAL_CLTV).unwrap();
+               nodes[0].node.send_payment(route, payment_hash_2).unwrap();
+               check_added_monitors!(nodes[0], 1);
+
+               let mut send_event = SendEvent::from_event(nodes[0].node.get_and_clear_pending_msg_events().remove(0));
+               nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &send_event.msgs[0]).unwrap();
+               commitment_signed_dance!(nodes[1], nodes[0], send_event.commitment_msg, false);
+
+               let events_1 = nodes[1].node.get_and_clear_pending_events();
+               assert_eq!(events_1.len(), 1);
+               match events_1[0] {
+                       Event::PendingHTLCsForwardable { .. } => { },
+                       _ => panic!("Unexpected event"),
+               };
+
+               nodes[1].node.channel_state.lock().unwrap().next_forward = Instant::now();
+               nodes[1].node.process_pending_htlc_forwards();
+               check_added_monitors!(nodes[1], 0);
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+               // Now fail monitor updating.
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Err(ChannelMonitorUpdateErr::TemporaryFailure);
+               if let msgs::HandleError { err, action: Some(msgs::ErrorAction::IgnoreError) } = nodes[1].node.handle_revoke_and_ack(&nodes[2].node.get_our_node_id(), &bs_revoke_and_ack).unwrap_err() {
+                       assert_eq!(err, "Failed to update ChannelMonitor");
+               } else { panic!(); }
+               assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+               check_added_monitors!(nodes[1], 1);
+
+               // Attempt to forward a third payment but fail due to the second channel being unavailable
+               // for forwarding.
+
+               let (_, payment_hash_3) = get_payment_preimage_hash!(nodes[0]);
+               let route = nodes[0].router.get_route(&nodes[2].node.get_our_node_id(), None, &Vec::new(), 1000000, TEST_FINAL_CLTV).unwrap();
+               nodes[0].node.send_payment(route, payment_hash_3).unwrap();
+               check_added_monitors!(nodes[0], 1);
+
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Ok(()); // We succeed in updating the monitor for the first channel
+               send_event = SendEvent::from_event(nodes[0].node.get_and_clear_pending_msg_events().remove(0));
+               nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &send_event.msgs[0]).unwrap();
+               commitment_signed_dance!(nodes[1], nodes[0], send_event.commitment_msg, false, true);
+               check_added_monitors!(nodes[1], 0);
+
+               let mut events_2 = nodes[1].node.get_and_clear_pending_msg_events();
+               assert_eq!(events_2.len(), 1);
+               match events_2.remove(0) {
+                       MessageSendEvent::UpdateHTLCs { node_id, updates } => {
+                               assert_eq!(node_id, nodes[0].node.get_our_node_id());
+                               assert!(updates.update_fulfill_htlcs.is_empty());
+                               assert_eq!(updates.update_fail_htlcs.len(), 1);
+                               assert!(updates.update_fail_malformed_htlcs.is_empty());
+                               assert!(updates.update_add_htlcs.is_empty());
+                               assert!(updates.update_fee.is_none());
+
+                               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fail_htlcs[0]).unwrap();
+                               commitment_signed_dance!(nodes[0], nodes[1], updates.commitment_signed, false, true);
+
+                               let msg_events = nodes[0].node.get_and_clear_pending_msg_events();
+                               assert_eq!(msg_events.len(), 1);
+                               match msg_events[0] {
+                                       MessageSendEvent::PaymentFailureNetworkUpdate { update: msgs::HTLCFailChannelUpdate::ChannelUpdateMessage { ref msg }} => {
+                                               assert_eq!(msg.contents.short_channel_id, chan_2.0.contents.short_channel_id);
+                                               assert_eq!(msg.contents.flags & 2, 2); // temp disabled
+                                       },
+                                       _ => panic!("Unexpected event"),
+                               }
+
+                               let events = nodes[0].node.get_and_clear_pending_events();
+                               assert_eq!(events.len(), 1);
+                               if let Event::PaymentFailed { payment_hash, rejected_by_dest, .. } = events[0] {
+                                       assert_eq!(payment_hash, payment_hash_3);
+                                       assert!(!rejected_by_dest);
+                               } else { panic!("Unexpected event!"); }
+                       },
+                       _ => panic!("Unexpected event type!"),
+               };
+
+               let (payment_preimage_4, payment_hash_4) = if test_ignore_second_cs {
+                       // Try to route another payment backwards from 2 to make sure 1 holds off on responding
+                       let (payment_preimage_4, payment_hash_4) = get_payment_preimage_hash!(nodes[0]);
+                       let route = nodes[2].router.get_route(&nodes[0].node.get_our_node_id(), None, &Vec::new(), 1000000, TEST_FINAL_CLTV).unwrap();
+                       nodes[2].node.send_payment(route, payment_hash_4).unwrap();
+                       check_added_monitors!(nodes[2], 1);
+
+                       send_event = SendEvent::from_event(nodes[2].node.get_and_clear_pending_msg_events().remove(0));
+                       nodes[1].node.handle_update_add_htlc(&nodes[2].node.get_our_node_id(), &send_event.msgs[0]).unwrap();
+                       if let Err(msgs::HandleError{err, action: Some(msgs::ErrorAction::IgnoreError) }) = nodes[1].node.handle_commitment_signed(&nodes[2].node.get_our_node_id(), &send_event.commitment_msg) {
+                               assert_eq!(err, "Previous monitor update failure prevented generation of RAA");
+                       } else { panic!(); }
+                       assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+                       assert!(nodes[1].node.get_and_clear_pending_events().is_empty());
+                       (Some(payment_preimage_4), Some(payment_hash_4))
+               } else { (None, None) };
+
+               // Restore monitor updating, ensuring we immediately get a fail-back update and a
+               // update_add update.
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Ok(());
+               nodes[1].node.test_restore_channel_monitor();
+               check_added_monitors!(nodes[1], 2);
+
+               let mut events_3 = nodes[1].node.get_and_clear_pending_msg_events();
+               if test_ignore_second_cs {
+                       assert_eq!(events_3.len(), 3);
+               } else {
+                       assert_eq!(events_3.len(), 2);
+               }
+
+               // Note that the ordering of the events for different nodes is non-prescriptive, though the
+               // ordering of the two events that both go to nodes[2] have to stay in the same order.
+               let messages_a = match events_3.pop().unwrap() {
+                       MessageSendEvent::UpdateHTLCs { node_id, mut updates } => {
+                               assert_eq!(node_id, nodes[0].node.get_our_node_id());
+                               assert!(updates.update_fulfill_htlcs.is_empty());
+                               assert_eq!(updates.update_fail_htlcs.len(), 1);
+                               assert!(updates.update_fail_malformed_htlcs.is_empty());
+                               assert!(updates.update_add_htlcs.is_empty());
+                               assert!(updates.update_fee.is_none());
+                               (updates.update_fail_htlcs.remove(0), updates.commitment_signed)
+                       },
+                       _ => panic!("Unexpected event type!"),
+               };
+               let raa = if test_ignore_second_cs {
+                       match events_3.remove(1) {
+                               MessageSendEvent::SendRevokeAndACK { node_id, msg } => {
+                                       assert_eq!(node_id, nodes[2].node.get_our_node_id());
+                                       Some(msg.clone())
+                               },
+                               _ => panic!("Unexpected event"),
+                       }
+               } else { None };
+               let send_event_b = SendEvent::from_event(events_3.remove(0));
+               assert_eq!(send_event_b.node_id, nodes[2].node.get_our_node_id());
+
+               // Now deliver the new messages...
+
+               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &messages_a.0).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], messages_a.1, false);
+               let events_4 = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events_4.len(), 1);
+               if let Event::PaymentFailed { payment_hash, rejected_by_dest, .. } = events_4[0] {
+                       assert_eq!(payment_hash, payment_hash_1);
+                       assert!(rejected_by_dest);
+               } else { panic!("Unexpected event!"); }
+
+               nodes[2].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &send_event_b.msgs[0]).unwrap();
+               if test_ignore_second_cs {
+                       nodes[2].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), &send_event_b.commitment_msg).unwrap();
+                       check_added_monitors!(nodes[2], 1);
+                       let bs_revoke_and_ack = get_event_msg!(nodes[2], MessageSendEvent::SendRevokeAndACK, nodes[1].node.get_our_node_id());
+                       nodes[2].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &raa.unwrap()).unwrap();
+                       check_added_monitors!(nodes[2], 1);
+                       let bs_cs = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+                       assert!(bs_cs.update_add_htlcs.is_empty());
+                       assert!(bs_cs.update_fail_htlcs.is_empty());
+                       assert!(bs_cs.update_fail_malformed_htlcs.is_empty());
+                       assert!(bs_cs.update_fulfill_htlcs.is_empty());
+                       assert!(bs_cs.update_fee.is_none());
+
+                       nodes[1].node.handle_revoke_and_ack(&nodes[2].node.get_our_node_id(), &bs_revoke_and_ack).unwrap();
+                       check_added_monitors!(nodes[1], 1);
+                       let as_cs = get_htlc_update_msgs!(nodes[1], nodes[2].node.get_our_node_id());
+                       assert!(as_cs.update_add_htlcs.is_empty());
+                       assert!(as_cs.update_fail_htlcs.is_empty());
+                       assert!(as_cs.update_fail_malformed_htlcs.is_empty());
+                       assert!(as_cs.update_fulfill_htlcs.is_empty());
+                       assert!(as_cs.update_fee.is_none());
+
+                       nodes[1].node.handle_commitment_signed(&nodes[2].node.get_our_node_id(), &bs_cs.commitment_signed).unwrap();
+                       check_added_monitors!(nodes[1], 1);
+                       let as_raa = get_event_msg!(nodes[1], MessageSendEvent::SendRevokeAndACK, nodes[2].node.get_our_node_id());
+
+                       nodes[2].node.handle_commitment_signed(&nodes[1].node.get_our_node_id(), &as_cs.commitment_signed).unwrap();
+                       check_added_monitors!(nodes[2], 1);
+                       let bs_second_raa = get_event_msg!(nodes[2], MessageSendEvent::SendRevokeAndACK, nodes[1].node.get_our_node_id());
+
+                       nodes[2].node.handle_revoke_and_ack(&nodes[1].node.get_our_node_id(), &as_raa).unwrap();
+                       check_added_monitors!(nodes[2], 1);
+                       assert!(nodes[2].node.get_and_clear_pending_msg_events().is_empty());
+
+                       nodes[1].node.handle_revoke_and_ack(&nodes[2].node.get_our_node_id(), &bs_second_raa).unwrap();
+                       check_added_monitors!(nodes[1], 1);
+                       assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+               } else {
+                       commitment_signed_dance!(nodes[2], nodes[1], send_event_b.commitment_msg, false);
+               }
+
+               let events_5 = nodes[2].node.get_and_clear_pending_events();
+               assert_eq!(events_5.len(), 1);
+               match events_5[0] {
+                       Event::PendingHTLCsForwardable { .. } => { },
+                       _ => panic!("Unexpected event"),
+               };
+
+               nodes[2].node.channel_state.lock().unwrap().next_forward = Instant::now();
+               nodes[2].node.process_pending_htlc_forwards();
+
+               let events_6 = nodes[2].node.get_and_clear_pending_events();
+               assert_eq!(events_6.len(), 1);
+               match events_6[0] {
+                       Event::PaymentReceived { payment_hash, .. } => { assert_eq!(payment_hash, payment_hash_2); },
+                       _ => panic!("Unexpected event"),
+               };
+
+               if test_ignore_second_cs {
+                       let events_7 = nodes[1].node.get_and_clear_pending_events();
+                       assert_eq!(events_7.len(), 1);
+                       match events_7[0] {
+                               Event::PendingHTLCsForwardable { .. } => { },
+                               _ => panic!("Unexpected event"),
+                       };
+
+                       nodes[1].node.channel_state.lock().unwrap().next_forward = Instant::now();
+                       nodes[1].node.process_pending_htlc_forwards();
+                       check_added_monitors!(nodes[1], 1);
+
+                       send_event = SendEvent::from_node(&nodes[1]);
+                       assert_eq!(send_event.node_id, nodes[0].node.get_our_node_id());
+                       assert_eq!(send_event.msgs.len(), 1);
+                       nodes[0].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &send_event.msgs[0]).unwrap();
+                       commitment_signed_dance!(nodes[0], nodes[1], send_event.commitment_msg, false);
+
+                       let events_8 = nodes[0].node.get_and_clear_pending_events();
+                       assert_eq!(events_8.len(), 1);
+                       match events_8[0] {
+                               Event::PendingHTLCsForwardable { .. } => { },
+                               _ => panic!("Unexpected event"),
+                       };
+
+                       nodes[0].node.channel_state.lock().unwrap().next_forward = Instant::now();
+                       nodes[0].node.process_pending_htlc_forwards();
+
+                       let events_9 = nodes[0].node.get_and_clear_pending_events();
+                       assert_eq!(events_9.len(), 1);
+                       match events_9[0] {
+                               Event::PaymentReceived { payment_hash, .. } => assert_eq!(payment_hash, payment_hash_4.unwrap()),
+                               _ => panic!("Unexpected event"),
+                       };
+                       claim_payment(&nodes[2], &[&nodes[1], &nodes[0]], payment_preimage_4.unwrap());
+               }
+
+               claim_payment(&nodes[0], &[&nodes[1], &nodes[2]], payment_preimage_2);
+       }
+
+       #[test]
+       fn test_monitor_update_fail_raa() {
+               do_test_monitor_update_fail_raa(false);
+               do_test_monitor_update_fail_raa(true);
+       }
+
+       #[test]
+       fn test_monitor_update_fail_reestablish() {
+               // Simple test for message retransmission after monitor update failure on
+               // channel_reestablish generating a monitor update (which comes from freeing holding cell
+               // HTLCs).
+               let mut nodes = create_network(3);
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+               create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let (our_payment_preimage, _) = route_payment(&nodes[0], &[&nodes[1], &nodes[2]], 1000000);
+
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
+               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+
+               assert!(nodes[2].node.claim_funds(our_payment_preimage));
+               check_added_monitors!(nodes[2], 1);
+               let mut updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               nodes[1].node.handle_update_fulfill_htlc(&nodes[2].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]).unwrap();
+               check_added_monitors!(nodes[1], 1);
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+               commitment_signed_dance!(nodes[1], nodes[2], updates.commitment_signed, false);
+
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Err(ChannelMonitorUpdateErr::TemporaryFailure);
+               nodes[0].node.peer_connected(&nodes[1].node.get_our_node_id());
+               nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id());
+
+               let as_reestablish = get_event_msg!(nodes[0], MessageSendEvent::SendChannelReestablish, nodes[1].node.get_our_node_id());
+               let bs_reestablish = get_event_msg!(nodes[1], MessageSendEvent::SendChannelReestablish, nodes[0].node.get_our_node_id());
+
+               nodes[0].node.handle_channel_reestablish(&nodes[1].node.get_our_node_id(), &bs_reestablish).unwrap();
+
+               if let msgs::HandleError { err, action: Some(msgs::ErrorAction::IgnoreError) } = nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), &as_reestablish).unwrap_err() {
+                       assert_eq!(err, "Failed to update ChannelMonitor");
+               } else { panic!(); }
+               check_added_monitors!(nodes[1], 1);
+
+               nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id(), false);
+               nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+
+               nodes[0].node.peer_connected(&nodes[1].node.get_our_node_id());
+               nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id());
+
+               assert!(as_reestablish == get_event_msg!(nodes[0], MessageSendEvent::SendChannelReestablish, nodes[1].node.get_our_node_id()));
+               assert!(bs_reestablish == get_event_msg!(nodes[1], MessageSendEvent::SendChannelReestablish, nodes[0].node.get_our_node_id()));
+
+               nodes[0].node.handle_channel_reestablish(&nodes[1].node.get_our_node_id(), &bs_reestablish).unwrap();
+
+               nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), &as_reestablish).unwrap();
+               check_added_monitors!(nodes[1], 0);
+               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+
+               *nodes[1].chan_monitor.update_ret.lock().unwrap() = Ok(());
+               nodes[1].node.test_restore_channel_monitor();
+               check_added_monitors!(nodes[1], 1);
+
+               updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               assert!(updates.update_fee.is_none());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], updates.commitment_signed, false);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       Event::PaymentSent { payment_preimage, .. } => assert_eq!(payment_preimage, our_payment_preimage),
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       #[test]
+       fn test_invalid_channel_announcement() {
+               //Test BOLT 7 channel_announcement msg requirement for final node, gather data to build customed channel_announcement msgs
+               let secp_ctx = Secp256k1::new();
+               let nodes = create_network(2);
 
                let chan_announcement = create_chan_between_nodes(&nodes[0], &nodes[1]);
 
@@ -6982,7 +8662,7 @@ mod tests {
                nodes[0].node = Arc::new(nodes_0_deserialized);
                check_added_monitors!(nodes[0], 1);
 
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
 
                fail_payment(&nodes[0], &[&nodes[1]], our_payment_hash);
                claim_payment(&nodes[0], &[&nodes[1]], our_payment_preimage);
@@ -7052,8 +8732,8 @@ mod tests {
                nodes[0].node = Arc::new(nodes_0_deserialized);
 
                // nodes[1] and nodes[2] have no lost state with nodes[0]...
-               reconnect_nodes(&nodes[0], &nodes[1], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
-               reconnect_nodes(&nodes[0], &nodes[2], false, (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[1], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+               reconnect_nodes(&nodes[0], &nodes[2], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
                //... and we can even still claim the payment!
                claim_payment(&nodes[2], &[&nodes[0], &nodes[1]], our_payment_preimage);
 
@@ -7064,4 +8744,1104 @@ mod tests {
                        assert_eq!(msg.channel_id, channel_id);
                } else { panic!("Unexpected result"); }
        }
+
+       macro_rules! check_spendable_outputs {
+               ($node: expr, $der_idx: expr) => {
+                       {
+                               let events = $node.chan_monitor.simple_monitor.get_and_clear_pending_events();
+                               let mut txn = Vec::new();
+                               for event in events {
+                                       match event {
+                                               Event::SpendableOutputs { ref outputs } => {
+                                                       for outp in outputs {
+                                                               match *outp {
+                                                                       SpendableOutputDescriptor::DynamicOutputP2WPKH { ref outpoint, ref key, ref output } => {
+                                                                               let input = TxIn {
+                                                                                       previous_output: outpoint.clone(),
+                                                                                       script_sig: Script::new(),
+                                                                                       sequence: 0,
+                                                                                       witness: Vec::new(),
+                                                                               };
+                                                                               let outp = TxOut {
+                                                                                       script_pubkey: Builder::new().push_opcode(opcodes::All::OP_RETURN).into_script(),
+                                                                                       value: output.value,
+                                                                               };
+                                                                               let mut spend_tx = Transaction {
+                                                                                       version: 2,
+                                                                                       lock_time: 0,
+                                                                                       input: vec![input],
+                                                                                       output: vec![outp],
+                                                                               };
+                                                                               let secp_ctx = Secp256k1::new();
+                                                                               let remotepubkey = PublicKey::from_secret_key(&secp_ctx, &key);
+                                                                               let witness_script = Address::p2pkh(&remotepubkey, Network::Testnet).script_pubkey();
+                                                                               let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], &witness_script, output.value)[..]).unwrap();
+                                                                               let remotesig = secp_ctx.sign(&sighash, key);
+                                                                               spend_tx.input[0].witness.push(remotesig.serialize_der(&secp_ctx).to_vec());
+                                                                               spend_tx.input[0].witness[0].push(SigHashType::All as u8);
+                                                                               spend_tx.input[0].witness.push(remotepubkey.serialize().to_vec());
+                                                                               txn.push(spend_tx);
+                                                                       },
+                                                                       SpendableOutputDescriptor::DynamicOutputP2WSH { ref outpoint, ref key, ref witness_script, ref to_self_delay, ref output } => {
+                                                                               let input = TxIn {
+                                                                                       previous_output: outpoint.clone(),
+                                                                                       script_sig: Script::new(),
+                                                                                       sequence: *to_self_delay as u32,
+                                                                                       witness: Vec::new(),
+                                                                               };
+                                                                               let outp = TxOut {
+                                                                                       script_pubkey: Builder::new().push_opcode(opcodes::All::OP_RETURN).into_script(),
+                                                                                       value: output.value,
+                                                                               };
+                                                                               let mut spend_tx = Transaction {
+                                                                                       version: 2,
+                                                                                       lock_time: 0,
+                                                                                       input: vec![input],
+                                                                                       output: vec![outp],
+                                                                               };
+                                                                               let secp_ctx = Secp256k1::new();
+                                                                               let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], witness_script, output.value)[..]).unwrap();
+                                                                               let local_delaysig = secp_ctx.sign(&sighash, key);
+                                                                               spend_tx.input[0].witness.push(local_delaysig.serialize_der(&secp_ctx).to_vec());
+                                                                               spend_tx.input[0].witness[0].push(SigHashType::All as u8);
+                                                                               spend_tx.input[0].witness.push(vec!(0));
+                                                                               spend_tx.input[0].witness.push(witness_script.clone().into_bytes());
+                                                                               txn.push(spend_tx);
+                                                                       },
+                                                                       SpendableOutputDescriptor::StaticOutput { ref outpoint, ref output } => {
+                                                                               let secp_ctx = Secp256k1::new();
+                                                                               let input = TxIn {
+                                                                                       previous_output: outpoint.clone(),
+                                                                                       script_sig: Script::new(),
+                                                                                       sequence: 0,
+                                                                                       witness: Vec::new(),
+                                                                               };
+                                                                               let outp = TxOut {
+                                                                                       script_pubkey: Builder::new().push_opcode(opcodes::All::OP_RETURN).into_script(),
+                                                                                       value: output.value,
+                                                                               };
+                                                                               let mut spend_tx = Transaction {
+                                                                                       version: 2,
+                                                                                       lock_time: 0,
+                                                                                       input: vec![input],
+                                                                                       output: vec![outp.clone()],
+                                                                               };
+                                                                               let secret = {
+                                                                                       match ExtendedPrivKey::new_master(&secp_ctx, Network::Testnet, &$node.node_seed) {
+                                                                                               Ok(master_key) => {
+                                                                                                       match master_key.ckd_priv(&secp_ctx, ChildNumber::from_hardened_idx($der_idx)) {
+                                                                                                               Ok(key) => key,
+                                                                                                               Err(_) => panic!("Your RNG is busted"),
+                                                                                                       }
+                                                                                               }
+                                                                                               Err(_) => panic!("Your rng is busted"),
+                                                                                       }
+                                                                               };
+                                                                               let pubkey = ExtendedPubKey::from_private(&secp_ctx, &secret).public_key;
+                                                                               let witness_script = Address::p2pkh(&pubkey, Network::Testnet).script_pubkey();
+                                                                               let sighash = Message::from_slice(&bip143::SighashComponents::new(&spend_tx).sighash_all(&spend_tx.input[0], &witness_script, output.value)[..]).unwrap();
+                                                                               let sig = secp_ctx.sign(&sighash, &secret.secret_key);
+                                                                               spend_tx.input[0].witness.push(sig.serialize_der(&secp_ctx).to_vec());
+                                                                               spend_tx.input[0].witness[0].push(SigHashType::All as u8);
+                                                                               spend_tx.input[0].witness.push(pubkey.serialize().to_vec());
+                                                                               txn.push(spend_tx);
+                                                                       },
+                                                               }
+                                                       }
+                                               },
+                                               _ => panic!("Unexpected event"),
+                                       };
+                               }
+                               txn
+                       }
+               }
+       }
+
+       #[test]
+       fn test_claim_sizeable_push_msat() {
+               // Incidentally test SpendableOutput event generation due to detection of to_local output on commitment tx
+               let nodes = create_network(2);
+
+               let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 99000000);
+               nodes[1].node.force_close_channel(&chan.2);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 1);
+               check_spends!(node_txn[0], chan.3.clone());
+               assert_eq!(node_txn[0].output.len(), 2); // We can't force trimming of to_remote output as channel_reserve_satoshis block us to do so at channel opening
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![node_txn[0].clone()] }, 0);
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 1);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_claim_on_remote_sizeable_push_msat() {
+               // Same test as previous, just test on remote commitment tx, as per_commitment_point registration changes following you're funder/fundee and
+               // to_remote output is encumbered by a P2WPKH
+
+               let nodes = create_network(2);
+
+               let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 99000000);
+               nodes[0].node.force_close_channel(&chan.2);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 1);
+               check_spends!(node_txn[0], chan.3.clone());
+               assert_eq!(node_txn[0].output.len(), 2); // We can't force trimming of to_remote output as channel_reserve_satoshis block us to do so at channel opening
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![node_txn[0].clone()] }, 0);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 2);
+               assert_eq!(spend_txn[0], spend_txn[1]);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_claim_on_remote_revoked_sizeable_push_msat() {
+               // Same test as previous, just test on remote revoked commitment tx, as per_commitment_point registration changes following you're funder/fundee and
+               // to_remote output is encumbered by a P2WPKH
+
+               let nodes = create_network(2);
+
+               let chan = create_announced_chan_between_nodes_with_value(&nodes, 0, 1, 100000, 59000000);
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(revoked_local_txn[0].input.len(), 1);
+               assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan.3.txid());
+
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage);
+               let  header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 4);
+               assert_eq!(spend_txn[0], spend_txn[2]); // to_remote output on revoked remote commitment_tx
+               check_spends!(spend_txn[0], revoked_local_txn[0].clone());
+               assert_eq!(spend_txn[1], spend_txn[3]); // to_local output on local commitment tx
+               check_spends!(spend_txn[1], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_static_spendable_outputs_preimage_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+
+               let commitment_tx = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(commitment_tx[0].input.len(), 1);
+               assert_eq!(commitment_tx[0].input[0].previous_output.txid, chan_1.3.txid());
+
+               // Settle A's commitment tx on B's chain
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               assert!(nodes[1].node.claim_funds(payment_preimage));
+               check_added_monitors!(nodes[1], 1);
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::UpdateHTLCs { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexepected event"),
+               }
+
+               // Check B's monitor was able to send back output descriptor event for preimage tx on A's commitment tx
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap(); // ChannelManager : 1 (local commitment tx), ChannelMonitor: 2 (1 preimage tx) * 2 (block-rescan)
+               check_spends!(node_txn[0], commitment_tx[0].clone());
+               assert_eq!(node_txn[0], node_txn[2]);
+               assert_eq!(node_txn[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(node_txn[1], chan_1.3.clone());
+
+               let spend_txn = check_spendable_outputs!(nodes[1], 1); // , 0, 0, 1, 1);
+               assert_eq!(spend_txn.len(), 2);
+               assert_eq!(spend_txn[0], spend_txn[1]);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_static_spendable_outputs_justice_tx_revoked_commitment_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.iter().next().unwrap().1.last_local_commitment_txn.clone();
+               assert_eq!(revoked_local_txn[0].input.len(), 1);
+               assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_1.3.txid());
+
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage);
+
+               let  header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let mut node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 3);
+               assert_eq!(node_txn.pop().unwrap(), node_txn[0]);
+               assert_eq!(node_txn[0].input.len(), 2);
+               check_spends!(node_txn[0], revoked_local_txn[0].clone());
+
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 2);
+               assert_eq!(spend_txn[0], spend_txn[1]);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_static_spendable_outputs_justice_tx_revoked_htlc_timeout_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               let revoked_local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(revoked_local_txn[0].input.len(), 1);
+               assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_1.3.txid());
+
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage);
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               // A will generate HTLC-Timeout from revoked commitment tx
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let revoked_htlc_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(revoked_htlc_txn.len(), 3);
+               assert_eq!(revoked_htlc_txn[0], revoked_htlc_txn[2]);
+               assert_eq!(revoked_htlc_txn[0].input.len(), 1);
+               assert_eq!(revoked_htlc_txn[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(revoked_htlc_txn[0], revoked_local_txn[0].clone());
+               check_spends!(revoked_htlc_txn[1], chan_1.3.clone());
+
+               // B will generate justice tx from A's revoked commitment/HTLC tx
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 4);
+               assert_eq!(node_txn[3].input.len(), 1);
+               check_spends!(node_txn[3], revoked_htlc_txn[0].clone());
+
+               // Check B's ChannelMonitor was able to generate the right spendable output descriptor
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 3);
+               assert_eq!(spend_txn[0], spend_txn[1]);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+               check_spends!(spend_txn[2], node_txn[3].clone());
+       }
+
+       #[test]
+       fn test_static_spendable_outputs_justice_tx_revoked_htlc_success_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 3000000).0;
+               let revoked_local_txn = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(revoked_local_txn[0].input.len(), 1);
+               assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, chan_1.3.txid());
+
+               claim_payment(&nodes[0], &vec!(&nodes[1])[..], payment_preimage);
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               // B will generate HTLC-Success from revoked commitment tx
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               let revoked_htlc_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+
+               assert_eq!(revoked_htlc_txn.len(), 3);
+               assert_eq!(revoked_htlc_txn[0], revoked_htlc_txn[2]);
+               assert_eq!(revoked_htlc_txn[0].input.len(), 1);
+               assert_eq!(revoked_htlc_txn[0].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(revoked_htlc_txn[0], revoked_local_txn[0].clone());
+
+               // A will generate justice tx from B's revoked commitment/HTLC tx
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![revoked_local_txn[0].clone(), revoked_htlc_txn[0].clone()] }, 1);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn.len(), 4);
+               assert_eq!(node_txn[3].input.len(), 1);
+               check_spends!(node_txn[3], revoked_htlc_txn[0].clone());
+
+               // Check A's ChannelMonitor was able to generate the right spendable output descriptor
+               let spend_txn = check_spendable_outputs!(nodes[0], 1);
+               assert_eq!(spend_txn.len(), 5);
+               assert_eq!(spend_txn[0], spend_txn[2]);
+               assert_eq!(spend_txn[1], spend_txn[3]);
+               check_spends!(spend_txn[0], revoked_local_txn[0].clone()); // spending to_remote output from revoked local tx
+               check_spends!(spend_txn[1], node_txn[2].clone()); // spending justice tx output from revoked local tx htlc received output
+               check_spends!(spend_txn[4], node_txn[3].clone()); // spending justice tx output on htlc success tx
+       }
+
+       #[test]
+       fn test_onchain_to_onchain_claim() {
+               // Test that in case of channel closure, we detect the state of output thanks to
+               // ChainWatchInterface and claim HTLC on downstream peer's remote commitment tx.
+               // First, have C claim an HTLC against its own latest commitment transaction.
+               // Then, broadcast these to B, which should update the monitor downstream on the A<->B
+               // channel.
+               // Finally, check that B will claim the HTLC output if A's latest commitment transaction
+               // gets broadcast.
+
+               let nodes = create_network(3);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               // Rebalance the network a bit by relaying one payment through all the channels ...
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 8000000);
+
+               let (payment_preimage, _payment_hash) = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2]), 3000000);
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42};
+               let commitment_tx = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               check_spends!(commitment_tx[0], chan_2.3.clone());
+               nodes[2].node.claim_funds(payment_preimage);
+               check_added_monitors!(nodes[2], 1);
+               let updates = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+
+               nodes[2].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+               let events = nodes[2].node.get_and_clear_pending_msg_events();
+               assert_eq!(events.len(), 1);
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+
+               let c_txn = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone(); // ChannelManager : 2 (commitment tx, HTLC-Success tx), ChannelMonitor : 1 (HTLC-Success tx)
+               assert_eq!(c_txn.len(), 3);
+               assert_eq!(c_txn[0], c_txn[2]);
+               assert_eq!(commitment_tx[0], c_txn[1]);
+               check_spends!(c_txn[1], chan_2.3.clone());
+               check_spends!(c_txn[2], c_txn[1].clone());
+               assert_eq!(c_txn[1].input[0].witness.clone().last().unwrap().len(), 71);
+               assert_eq!(c_txn[2].input[0].witness.clone().last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               assert!(c_txn[0].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+               assert_eq!(c_txn[0].lock_time, 0); // Success tx
+
+               // So we broadcast C's commitment tx and HTLC-Success on B's chain, we should successfully be able to extract preimage and update downstream monitor
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![c_txn[1].clone(), c_txn[2].clone()]}, 1);
+               {
+                       let mut b_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                       assert_eq!(b_txn.len(), 4);
+                       assert_eq!(b_txn[0], b_txn[3]);
+                       check_spends!(b_txn[1], chan_2.3); // B local commitment tx, issued by ChannelManager
+                       check_spends!(b_txn[2], b_txn[1].clone()); // HTLC-Timeout on B local commitment tx, issued by ChannelManager
+                       assert_eq!(b_txn[2].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+                       assert!(b_txn[2].output[0].script_pubkey.is_v0_p2wsh()); // revokeable output
+                       assert_ne!(b_txn[2].lock_time, 0); // Timeout tx
+                       check_spends!(b_txn[0], c_txn[1].clone()); // timeout tx on C remote commitment tx, issued by ChannelMonitor, * 2 due to block rescan
+                       assert_eq!(b_txn[0].input[0].witness.clone().last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+                       assert!(b_txn[0].output[0].script_pubkey.is_v0_p2wpkh()); // direct payment
+                       assert_ne!(b_txn[2].lock_time, 0); // Timeout tx
+                       b_txn.clear();
+               }
+               let msg_events = nodes[1].node.get_and_clear_pending_msg_events();
+               check_added_monitors!(nodes[1], 1);
+               match msg_events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate {  .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match msg_events[1] {
+                       MessageSendEvent::UpdateHTLCs { ref node_id, updates: msgs::CommitmentUpdate { ref update_add_htlcs, ref update_fulfill_htlcs, ref update_fail_htlcs, ref update_fail_malformed_htlcs, .. } } => {
+                               assert!(update_add_htlcs.is_empty());
+                               assert!(update_fail_htlcs.is_empty());
+                               assert_eq!(update_fulfill_htlcs.len(), 1);
+                               assert!(update_fail_malformed_htlcs.is_empty());
+                               assert_eq!(nodes[0].node.get_our_node_id(), *node_id);
+                       },
+                       _ => panic!("Unexpected event"),
+               };
+               // Broadcast A's commitment tx on B's chain to see if we are able to claim inbound HTLC with our HTLC-Success tx
+               let commitment_tx = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_tx[0].clone()]}, 1);
+               let b_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(b_txn.len(), 3);
+               check_spends!(b_txn[1], chan_1.3); // Local commitment tx, issued by ChannelManager
+               assert_eq!(b_txn[0], b_txn[2]); // HTLC-Success tx, issued by ChannelMonitor, * 2 due to block rescan
+               check_spends!(b_txn[0], commitment_tx[0].clone());
+               assert_eq!(b_txn[0].input[0].witness.clone().last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               assert!(b_txn[0].output[0].script_pubkey.is_v0_p2wpkh()); // direct payment
+               assert_eq!(b_txn[2].lock_time, 0); // Success tx
+               let msg_events = nodes[1].node.get_and_clear_pending_msg_events();
+               match msg_events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate {  .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       #[test]
+       fn test_duplicate_payment_hash_one_failure_one_success() {
+               // Topology : A --> B --> C
+               // We route 2 payments with same hash between B and C, one will be timeout, the other successfully claim
+               let mut nodes = create_network(3);
+
+               create_announced_chan_between_nodes(&nodes, 0, 1);
+               let chan_2 = create_announced_chan_between_nodes(&nodes, 1, 2);
+
+               let (our_payment_preimage, duplicate_payment_hash) = route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 900000);
+               *nodes[0].network_payment_count.borrow_mut() -= 1;
+               assert_eq!(route_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 900000).1, duplicate_payment_hash);
+
+               let commitment_txn = nodes[2].node.channel_state.lock().unwrap().by_id.get(&chan_2.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(commitment_txn[0].input.len(), 1);
+               check_spends!(commitment_txn[0], chan_2.3.clone());
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
+               let htlc_timeout_tx;
+               { // Extract one of the two HTLC-Timeout transaction
+                       let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+                       assert_eq!(node_txn.len(), 7);
+                       assert_eq!(node_txn[0], node_txn[5]);
+                       assert_eq!(node_txn[1], node_txn[6]);
+                       check_spends!(node_txn[0], commitment_txn[0].clone());
+                       assert_eq!(node_txn[0].input.len(), 1);
+                       check_spends!(node_txn[1], commitment_txn[0].clone());
+                       assert_eq!(node_txn[1].input.len(), 1);
+                       assert_ne!(node_txn[0].input[0], node_txn[1].input[0]);
+                       check_spends!(node_txn[2], chan_2.3.clone());
+                       check_spends!(node_txn[3], node_txn[2].clone());
+                       check_spends!(node_txn[4], node_txn[2].clone());
+                       htlc_timeout_tx = node_txn[1].clone();
+               }
+
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexepected event"),
+               }
+
+               nodes[2].node.claim_funds(our_payment_preimage);
+               nodes[2].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![commitment_txn[0].clone()] }, 1);
+               check_added_monitors!(nodes[2], 2);
+               let events = nodes[2].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::UpdateHTLCs { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexepected event"),
+               }
+               let htlc_success_txn: Vec<_> = nodes[2].tx_broadcaster.txn_broadcasted.lock().unwrap().clone();
+               assert_eq!(htlc_success_txn.len(), 5);
+               check_spends!(htlc_success_txn[2], chan_2.3.clone());
+               assert_eq!(htlc_success_txn[0], htlc_success_txn[3]);
+               assert_eq!(htlc_success_txn[0].input.len(), 1);
+               assert_eq!(htlc_success_txn[0].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               assert_eq!(htlc_success_txn[1], htlc_success_txn[4]);
+               assert_eq!(htlc_success_txn[1].input.len(), 1);
+               assert_eq!(htlc_success_txn[1].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               assert_ne!(htlc_success_txn[0].input[0], htlc_success_txn[1].input[0]);
+               check_spends!(htlc_success_txn[0], commitment_txn[0].clone());
+               check_spends!(htlc_success_txn[1], commitment_txn[0].clone());
+
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![htlc_timeout_tx] }, 200);
+               let htlc_updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               assert!(htlc_updates.update_add_htlcs.is_empty());
+               assert_eq!(htlc_updates.update_fail_htlcs.len(), 1);
+               assert_eq!(htlc_updates.update_fail_htlcs[0].htlc_id, 1);
+               assert!(htlc_updates.update_fulfill_htlcs.is_empty());
+               assert!(htlc_updates.update_fail_malformed_htlcs.is_empty());
+               check_added_monitors!(nodes[1], 1);
+
+               nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &htlc_updates.update_fail_htlcs[0]).unwrap();
+               assert!(nodes[0].node.get_and_clear_pending_msg_events().is_empty());
+               {
+                       commitment_signed_dance!(nodes[0], nodes[1], &htlc_updates.commitment_signed, false, true);
+                       let events = nodes[0].node.get_and_clear_pending_msg_events();
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               MessageSendEvent::PaymentFailureNetworkUpdate { update: msgs::HTLCFailChannelUpdate::ChannelClosed { .. }  } => {
+                               },
+                               _ => { panic!("Unexpected event"); }
+                       }
+               }
+               let events = nodes[0].node.get_and_clear_pending_events();
+               match events[0] {
+                       Event::PaymentFailed { ref payment_hash, .. } => {
+                               assert_eq!(*payment_hash, duplicate_payment_hash);
+                       }
+                       _ => panic!("Unexpected event"),
+               }
+
+               // Solve 2nd HTLC by broadcasting on B's chain HTLC-Success Tx from C
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![htlc_success_txn[0].clone()] }, 200);
+               let updates = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+               assert!(updates.update_add_htlcs.is_empty());
+               assert!(updates.update_fail_htlcs.is_empty());
+               assert_eq!(updates.update_fulfill_htlcs.len(), 1);
+               assert_eq!(updates.update_fulfill_htlcs[0].htlc_id, 0);
+               assert!(updates.update_fail_malformed_htlcs.is_empty());
+               check_added_monitors!(nodes[1], 1);
+
+               nodes[0].node.handle_update_fulfill_htlc(&nodes[1].node.get_our_node_id(), &updates.update_fulfill_htlcs[0]).unwrap();
+               commitment_signed_dance!(nodes[0], nodes[1], &updates.commitment_signed, false);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               match events[0] {
+                       Event::PaymentSent { ref payment_preimage } => {
+                               assert_eq!(*payment_preimage, our_payment_preimage);
+                       }
+                       _ => panic!("Unexpected event"),
+               }
+       }
+
+       #[test]
+       fn test_dynamic_spendable_outputs_local_htlc_success_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               let payment_preimage = route_payment(&nodes[0], &vec!(&nodes[1])[..], 9000000).0;
+               let local_txn = nodes[1].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(local_txn[0].input.len(), 1);
+               check_spends!(local_txn[0], chan_1.3.clone());
+
+               // Give B knowledge of preimage to be able to generate a local HTLC-Success Tx
+               nodes[1].node.claim_funds(payment_preimage);
+               check_added_monitors!(nodes[1], 1);
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![local_txn[0].clone()] }, 1);
+               let events = nodes[1].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::UpdateHTLCs { .. } => {},
+                       _ => panic!("Unexpected event"),
+               }
+               match events[1] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexepected event"),
+               }
+               let node_txn = nodes[1].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn[0].input.len(), 1);
+               assert_eq!(node_txn[0].input[0].witness.last().unwrap().len(), ACCEPTED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(node_txn[0], local_txn[0].clone());
+
+               // Verify that B is able to spend its own HTLC-Success tx thanks to spendable output event given back by its ChannelMonitor
+               let spend_txn = check_spendable_outputs!(nodes[1], 1);
+               assert_eq!(spend_txn.len(), 2);
+               check_spends!(spend_txn[0], node_txn[0].clone());
+               check_spends!(spend_txn[1], node_txn[2].clone());
+       }
+
+       #[test]
+       fn test_dynamic_spendable_outputs_local_htlc_timeout_tx() {
+               let nodes = create_network(2);
+
+               // Create some initial channels
+               let chan_1 = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               route_payment(&nodes[0], &vec!(&nodes[1])[..], 9000000).0;
+               let local_txn = nodes[0].node.channel_state.lock().unwrap().by_id.get(&chan_1.2).unwrap().last_local_commitment_txn.clone();
+               assert_eq!(local_txn[0].input.len(), 1);
+               check_spends!(local_txn[0], chan_1.3.clone());
+
+               // Timeout HTLC on A's chain and so it can generate a HTLC-Timeout tx
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![local_txn[0].clone()] }, 200);
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               match events[0] {
+                       MessageSendEvent::BroadcastChannelUpdate { .. } => {},
+                       _ => panic!("Unexepected event"),
+               }
+               let node_txn = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap();
+               assert_eq!(node_txn[0].input.len(), 1);
+               assert_eq!(node_txn[0].input[0].witness.last().unwrap().len(), OFFERED_HTLC_SCRIPT_WEIGHT);
+               check_spends!(node_txn[0], local_txn[0].clone());
+
+               // Verify that A is able to spend its own HTLC-Timeout tx thanks to spendable output event given back by its ChannelMonitor
+               let spend_txn = check_spendable_outputs!(nodes[0], 1);
+               assert_eq!(spend_txn.len(), 8);
+               assert_eq!(spend_txn[0], spend_txn[2]);
+               assert_eq!(spend_txn[0], spend_txn[4]);
+               assert_eq!(spend_txn[0], spend_txn[6]);
+               assert_eq!(spend_txn[1], spend_txn[3]);
+               assert_eq!(spend_txn[1], spend_txn[5]);
+               assert_eq!(spend_txn[1], spend_txn[7]);
+               check_spends!(spend_txn[0], local_txn[0].clone());
+               check_spends!(spend_txn[1], node_txn[0].clone());
+       }
+
+       #[test]
+       fn test_static_output_closing_tx() {
+               let nodes = create_network(2);
+
+               let chan = create_announced_chan_between_nodes(&nodes, 0, 1);
+
+               send_payment(&nodes[0], &vec!(&nodes[1])[..], 8000000);
+               let closing_tx = close_channel(&nodes[0], &nodes[1], &chan.2, chan.3, true).2;
+
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               nodes[0].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![closing_tx.clone()] }, 1);
+               let spend_txn = check_spendable_outputs!(nodes[0], 2);
+               assert_eq!(spend_txn.len(), 1);
+               check_spends!(spend_txn[0], closing_tx.clone());
+
+               nodes[1].chain_monitor.block_connected_with_filtering(&Block { header, txdata: vec![closing_tx.clone()] }, 1);
+               let spend_txn = check_spendable_outputs!(nodes[1], 2);
+               assert_eq!(spend_txn.len(), 1);
+               check_spends!(spend_txn[0], closing_tx);
+       }
+
+       fn run_onion_failure_test<F1,F2>(_name: &str, test_case: u8, nodes: &Vec<Node>, route: &Route, payment_hash: &PaymentHash, callback_msg: F1, callback_node: F2, expected_retryable: bool, expected_error_code: Option<u16>, expected_channel_update: Option<HTLCFailChannelUpdate>)
+               where F1: for <'a> FnMut(&'a mut msgs::UpdateAddHTLC),
+                                       F2: FnMut(),
+       {
+               run_onion_failure_test_with_fail_intercept(_name, test_case, nodes, route, payment_hash, callback_msg, |_|{}, callback_node, expected_retryable, expected_error_code, expected_channel_update);
+       }
+
+       // test_case
+       // 0: node1 fail backward
+       // 1: final node fail backward
+       // 2: payment completed but the user reject the payment
+       // 3: final node fail backward (but tamper onion payloads from node0)
+       // 100: trigger error in the intermediate node and tamper returnning fail_htlc
+       // 200: trigger error in the final node and tamper returnning fail_htlc
+       fn run_onion_failure_test_with_fail_intercept<F1,F2,F3>(_name: &str, test_case: u8, nodes: &Vec<Node>, route: &Route, payment_hash: &PaymentHash, mut callback_msg: F1, mut callback_fail: F2, mut callback_node: F3, expected_retryable: bool, expected_error_code: Option<u16>, expected_channel_update: Option<HTLCFailChannelUpdate>)
+               where F1: for <'a> FnMut(&'a mut msgs::UpdateAddHTLC),
+                                       F2: for <'a> FnMut(&'a mut msgs::UpdateFailHTLC),
+                                       F3: FnMut(),
+       {
+               use ln::msgs::HTLCFailChannelUpdate;
+
+               // reset block height
+               let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+               for ix in 0..nodes.len() {
+                       nodes[ix].chain_monitor.block_connected_checked(&header, 1, &Vec::new()[..], &[0; 0]);
+               }
+
+               macro_rules! expect_event {
+                       ($node: expr, $event_type: path) => {{
+                               let events = $node.node.get_and_clear_pending_events();
+                               assert_eq!(events.len(), 1);
+                               match events[0] {
+                                       $event_type { .. } => {},
+                                       _ => panic!("Unexpected event"),
+                               }
+                       }}
+               }
+
+               macro_rules! expect_htlc_forward {
+                       ($node: expr) => {{
+                               expect_event!($node, Event::PendingHTLCsForwardable);
+                               $node.node.channel_state.lock().unwrap().next_forward = Instant::now();
+                               $node.node.process_pending_htlc_forwards();
+                       }}
+               }
+
+               // 0 ~~> 2 send payment
+               nodes[0].node.send_payment(route.clone(), payment_hash.clone()).unwrap();
+               check_added_monitors!(nodes[0], 1);
+               let update_0 = get_htlc_update_msgs!(nodes[0], nodes[1].node.get_our_node_id());
+               // temper update_add (0 => 1)
+               let mut update_add_0 = update_0.update_add_htlcs[0].clone();
+               if test_case == 0 || test_case == 3 || test_case == 100 {
+                       callback_msg(&mut update_add_0);
+                       callback_node();
+               }
+               // 0 => 1 update_add & CS
+               nodes[1].node.handle_update_add_htlc(&nodes[0].node.get_our_node_id(), &update_add_0).unwrap();
+               commitment_signed_dance!(nodes[1], nodes[0], &update_0.commitment_signed, false, true);
+
+               let update_1_0 = match test_case {
+                       0|100 => { // intermediate node failure; fail backward to 0
+                               let update_1_0 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+                               assert!(update_1_0.update_fail_htlcs.len()+update_1_0.update_fail_malformed_htlcs.len()==1 && (update_1_0.update_fail_htlcs.len()==1 || update_1_0.update_fail_malformed_htlcs.len()==1));
+                               update_1_0
+                       },
+                       1|2|3|200 => { // final node failure; forwarding to 2
+                               assert!(nodes[1].node.get_and_clear_pending_msg_events().is_empty());
+                               // forwarding on 1
+                               if test_case != 200 {
+                                       callback_node();
+                               }
+                               expect_htlc_forward!(&nodes[1]);
+
+                               let update_1 = get_htlc_update_msgs!(nodes[1], nodes[2].node.get_our_node_id());
+                               check_added_monitors!(&nodes[1], 1);
+                               assert_eq!(update_1.update_add_htlcs.len(), 1);
+                               // tamper update_add (1 => 2)
+                               let mut update_add_1 = update_1.update_add_htlcs[0].clone();
+                               if test_case != 3 && test_case != 200 {
+                                       callback_msg(&mut update_add_1);
+                               }
+
+                               // 1 => 2
+                               nodes[2].node.handle_update_add_htlc(&nodes[1].node.get_our_node_id(), &update_add_1).unwrap();
+                               commitment_signed_dance!(nodes[2], nodes[1], update_1.commitment_signed, false, true);
+
+                               if test_case == 2 || test_case == 200 {
+                                       expect_htlc_forward!(&nodes[2]);
+                                       expect_event!(&nodes[2], Event::PaymentReceived);
+                                       callback_node();
+                               }
+
+                               let update_2_1 = get_htlc_update_msgs!(nodes[2], nodes[1].node.get_our_node_id());
+                               if test_case == 2 || test_case == 200 {
+                                       check_added_monitors!(&nodes[2], 1);
+                               }
+                               assert!(update_2_1.update_fail_htlcs.len() == 1);
+
+                               let mut fail_msg = update_2_1.update_fail_htlcs[0].clone();
+                               if test_case == 200 {
+                                       callback_fail(&mut fail_msg);
+                               }
+
+                               // 2 => 1
+                               nodes[1].node.handle_update_fail_htlc(&nodes[2].node.get_our_node_id(), &fail_msg).unwrap();
+                               commitment_signed_dance!(nodes[1], nodes[2], update_2_1.commitment_signed, true, true);
+
+                               // backward fail on 1
+                               let update_1_0 = get_htlc_update_msgs!(nodes[1], nodes[0].node.get_our_node_id());
+                               assert!(update_1_0.update_fail_htlcs.len() == 1);
+                               update_1_0
+                       },
+                       _ => unreachable!(),
+               };
+
+               // 1 => 0 commitment_signed_dance
+               if update_1_0.update_fail_htlcs.len() > 0 {
+                       let mut fail_msg = update_1_0.update_fail_htlcs[0].clone();
+                       if test_case == 100 {
+                               callback_fail(&mut fail_msg);
+                       }
+                       nodes[0].node.handle_update_fail_htlc(&nodes[1].node.get_our_node_id(), &fail_msg).unwrap();
+               } else {
+                       nodes[0].node.handle_update_fail_malformed_htlc(&nodes[1].node.get_our_node_id(), &update_1_0.update_fail_malformed_htlcs[0]).unwrap();
+               };
+
+               commitment_signed_dance!(nodes[0], nodes[1], update_1_0.commitment_signed, false, true);
+
+               let events = nodes[0].node.get_and_clear_pending_events();
+               assert_eq!(events.len(), 1);
+               if let &Event::PaymentFailed { payment_hash:_, ref rejected_by_dest, ref error_code } = &events[0] {
+                       assert_eq!(*rejected_by_dest, !expected_retryable);
+                       assert_eq!(*error_code, expected_error_code);
+               } else {
+                       panic!("Uexpected event");
+               }
+
+               let events = nodes[0].node.get_and_clear_pending_msg_events();
+               if expected_channel_update.is_some() {
+                       assert_eq!(events.len(), 1);
+                       match events[0] {
+                               MessageSendEvent::PaymentFailureNetworkUpdate { ref update } => {
+                                       match update {
+                                               &HTLCFailChannelUpdate::ChannelUpdateMessage { .. } => {
+                                                       if let HTLCFailChannelUpdate::ChannelUpdateMessage { .. } = expected_channel_update.unwrap() {} else {
+                                                               panic!("channel_update not found!");
+                                                       }
+                                               },
+                                               &HTLCFailChannelUpdate::ChannelClosed { ref short_channel_id, ref is_permanent } => {
+                                                       if let HTLCFailChannelUpdate::ChannelClosed { short_channel_id: ref expected_short_channel_id, is_permanent: ref expected_is_permanent } = expected_channel_update.unwrap() {
+                                                               assert!(*short_channel_id == *expected_short_channel_id);
+                                                               assert!(*is_permanent == *expected_is_permanent);
+                                                       } else {
+                                                               panic!("Unexpected message event");
+                                                       }
+                                               },
+                                               &HTLCFailChannelUpdate::NodeFailure { ref node_id, ref is_permanent } => {
+                                                       if let HTLCFailChannelUpdate::NodeFailure { node_id: ref expected_node_id, is_permanent: ref expected_is_permanent } = expected_channel_update.unwrap() {
+                                                               assert!(*node_id == *expected_node_id);
+                                                               assert!(*is_permanent == *expected_is_permanent);
+                                                       } else {
+                                                               panic!("Unexpected message event");
+                                                       }
+                                               },
+                                       }
+                               },
+                               _ => panic!("Unexpected message event"),
+                       }
+               } else {
+                       assert_eq!(events.len(), 0);
+               }
+       }
+
+       impl msgs::ChannelUpdate {
+               fn dummy() -> msgs::ChannelUpdate {
+                       use secp256k1::ffi::Signature as FFISignature;
+                       use secp256k1::Signature;
+                       msgs::ChannelUpdate {
+                               signature: Signature::from(FFISignature::new()),
+                               contents: msgs::UnsignedChannelUpdate {
+                                       chain_hash: Sha256dHash::from_data(&vec![0u8][..]),
+                                       short_channel_id: 0,
+                                       timestamp: 0,
+                                       flags: 0,
+                                       cltv_expiry_delta: 0,
+                                       htlc_minimum_msat: 0,
+                                       fee_base_msat: 0,
+                                       fee_proportional_millionths: 0,
+                                       excess_data: vec![],
+                               }
+                       }
+               }
+       }
+
+       #[test]
+       fn test_onion_failure() {
+               use ln::msgs::ChannelUpdate;
+               use ln::channelmanager::CLTV_FAR_FAR_AWAY;
+               use secp256k1;
+
+               const BADONION: u16 = 0x8000;
+               const PERM: u16 = 0x4000;
+               const NODE: u16 = 0x2000;
+               const UPDATE: u16 = 0x1000;
+
+               let mut nodes = create_network(3);
+               for node in nodes.iter() {
+                       *node.keys_manager.override_session_priv.lock().unwrap() = Some(SecretKey::from_slice(&Secp256k1::without_caps(), &[3; 32]).unwrap());
+               }
+               let channels = [create_announced_chan_between_nodes(&nodes, 0, 1), create_announced_chan_between_nodes(&nodes, 1, 2)];
+               let (_, payment_hash) = get_payment_preimage_hash!(nodes[0]);
+               let route = nodes[0].router.get_route(&nodes[2].node.get_our_node_id(), None, &Vec::new(), 40000, TEST_FINAL_CLTV).unwrap();
+               // positve case
+               send_payment(&nodes[0], &vec!(&nodes[1], &nodes[2])[..], 40000);
+
+               // intermediate node failure
+               run_onion_failure_test("invalid_realm", 0, &nodes, &route, &payment_hash, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let cur_height = nodes[0].node.latest_block_height.load(Ordering::Acquire) as u32 + 1;
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       let (mut onion_payloads, _htlc_msat, _htlc_cltv) = ChannelManager::build_onion_payloads(&route, cur_height).unwrap();
+                       onion_payloads[0].realm = 3;
+                       msg.onion_routing_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, &payment_hash);
+               }, ||{}, true, Some(PERM|1), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));//XXX incremented channels idx here
+
+               // final node failure
+               run_onion_failure_test("invalid_realm", 3, &nodes, &route, &payment_hash, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let cur_height = nodes[0].node.latest_block_height.load(Ordering::Acquire) as u32 + 1;
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       let (mut onion_payloads, _htlc_msat, _htlc_cltv) = ChannelManager::build_onion_payloads(&route, cur_height).unwrap();
+                       onion_payloads[1].realm = 3;
+                       msg.onion_routing_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, &payment_hash);
+               }, ||{}, false, Some(PERM|1), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
+
+               // the following three with run_onion_failure_test_with_fail_intercept() test only the origin node
+               // receiving simulated fail messages
+               // intermediate node failure
+               run_onion_failure_test_with_fail_intercept("temporary_node_failure", 100, &nodes, &route, &payment_hash, |msg| {
+                       // trigger error
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       // and tamper returing error message
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], NODE|2, &[0;0]);
+               }, ||{}, true, Some(NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[0].pubkey, is_permanent: false}));
+
+               // final node failure
+               run_onion_failure_test_with_fail_intercept("temporary_node_failure", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
+                       // and tamper returing error message
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], NODE|2, &[0;0]);
+               }, ||{
+                       nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               }, true, Some(NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[1].pubkey, is_permanent: false}));
+
+               // intermediate node failure
+               run_onion_failure_test_with_fail_intercept("permanent_node_failure", 100, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|NODE|2, &[0;0]);
+               }, ||{}, true, Some(PERM|NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[0].pubkey, is_permanent: true}));
+
+               // final node failure
+               run_onion_failure_test_with_fail_intercept("permanent_node_failure", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], PERM|NODE|2, &[0;0]);
+               }, ||{
+                       nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               }, false, Some(PERM|NODE|2), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[1].pubkey, is_permanent: true}));
+
+               // intermediate node failure
+               run_onion_failure_test_with_fail_intercept("required_node_feature_missing", 100, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|NODE|3, &[0;0]);
+               }, ||{
+                       nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               }, true, Some(PERM|NODE|3), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[0].pubkey, is_permanent: true}));
+
+               // final node failure
+               run_onion_failure_test_with_fail_intercept("required_node_feature_missing", 200, &nodes, &route, &payment_hash, |_msg| {}, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[1].shared_secret[..], PERM|NODE|3, &[0;0]);
+               }, ||{
+                       nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               }, false, Some(PERM|NODE|3), Some(msgs::HTLCFailChannelUpdate::NodeFailure{node_id: route.hops[1].pubkey, is_permanent: true}));
+
+               run_onion_failure_test("invalid_onion_version", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.version = 1; }, ||{}, true,
+                       Some(BADONION|PERM|4), None);
+
+               run_onion_failure_test("invalid_onion_hmac", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.hmac = [3; 32]; }, ||{}, true,
+                       Some(BADONION|PERM|5), None);
+
+               run_onion_failure_test("invalid_onion_key", 0, &nodes, &route, &payment_hash, |msg| { msg.onion_routing_packet.public_key = Err(secp256k1::Error::InvalidPublicKey);}, ||{}, true,
+                       Some(BADONION|PERM|6), None);
+
+               run_onion_failure_test_with_fail_intercept("temporary_channel_failure", 100, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], UPDATE|7, &ChannelUpdate::dummy().encode_with_len()[..]);
+               }, ||{}, true, Some(UPDATE|7), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
+
+               run_onion_failure_test_with_fail_intercept("permanent_channel_failure", 100, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|8, &[0;0]);
+                       // short_channel_id from the processing node
+               }, ||{}, true, Some(PERM|8), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
+
+               run_onion_failure_test_with_fail_intercept("required_channel_feature_missing", 100, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       msg.reason = ChannelManager::build_first_hop_failure_packet(&onion_keys[0].shared_secret[..], PERM|9, &[0;0]);
+                       // short_channel_id from the processing node
+               }, ||{}, true, Some(PERM|9), Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: channels[1].0.contents.short_channel_id, is_permanent: true}));
+
+               let mut bogus_route = route.clone();
+               bogus_route.hops[1].short_channel_id -= 1;
+               run_onion_failure_test("unknown_next_peer", 0, &nodes, &bogus_route, &payment_hash, |_| {}, ||{}, true, Some(PERM|10),
+                 Some(msgs::HTLCFailChannelUpdate::ChannelClosed{short_channel_id: bogus_route.hops[1].short_channel_id, is_permanent:true}));
+
+               let amt_to_forward = nodes[1].node.channel_state.lock().unwrap().by_id.get(&channels[1].2).unwrap().get_their_htlc_minimum_msat() - 1;
+               let mut bogus_route = route.clone();
+               let route_len = bogus_route.hops.len();
+               bogus_route.hops[route_len-1].fee_msat = amt_to_forward;
+               run_onion_failure_test("amount_below_minimum", 0, &nodes, &bogus_route, &payment_hash, |_| {}, ||{}, true, Some(UPDATE|11), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
+
+               //TODO: with new config API, we will be able to generate both valid and
+               //invalid channel_update cases.
+               run_onion_failure_test("fee_insufficient", 0, &nodes, &route, &payment_hash, |msg| {
+                       msg.amount_msat -= 1;
+               }, || {}, true, Some(UPDATE|12), Some(msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id: channels[0].0.contents.short_channel_id, is_permanent: true}));
+
+               run_onion_failure_test("incorrect_cltv_expiry", 0, &nodes, &route, &payment_hash, |msg| {
+                       // need to violate: cltv_expiry - cltv_expiry_delta >= outgoing_cltv_value
+                       msg.cltv_expiry -= 1;
+               }, || {}, true, Some(UPDATE|13), Some(msgs::HTLCFailChannelUpdate::ChannelClosed { short_channel_id: channels[0].0.contents.short_channel_id, is_permanent: true}));
+
+               run_onion_failure_test("expiry_too_soon", 0, &nodes, &route, &payment_hash, |msg| {
+                       let height = msg.cltv_expiry - CLTV_CLAIM_BUFFER - HTLC_FAIL_TIMEOUT_BLOCKS + 1;
+                       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[1].chain_monitor.block_connected_checked(&header, height, &Vec::new()[..], &[0; 0]);
+               }, ||{}, true, Some(UPDATE|14), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
+
+               run_onion_failure_test("unknown_payment_hash", 2, &nodes, &route, &payment_hash, |_| {}, || {
+                       nodes[2].node.fail_htlc_backwards(&payment_hash, 0);
+               }, false, Some(PERM|15), None);
+
+               run_onion_failure_test("final_expiry_too_soon", 1, &nodes, &route, &payment_hash, |msg| {
+                       let height = msg.cltv_expiry - CLTV_CLAIM_BUFFER - HTLC_FAIL_TIMEOUT_BLOCKS + 1;
+                       let header = BlockHeader { version: 0x20000000, prev_blockhash: Default::default(), merkle_root: Default::default(), time: 42, bits: 42, nonce: 42 };
+                       nodes[2].chain_monitor.block_connected_checked(&header, height, &Vec::new()[..], &[0; 0]);
+               }, || {}, true, Some(17), None);
+
+               run_onion_failure_test("final_incorrect_cltv_expiry", 1, &nodes, &route, &payment_hash, |_| {}, || {
+                       for (_, mut pending_forwards) in nodes[1].node.channel_state.lock().unwrap().borrow_parts().forward_htlcs.iter_mut() {
+                               for f in pending_forwards.iter_mut() {
+                                       f.forward_info.outgoing_cltv_value += 1;
+                               }
+                       }
+               }, true, Some(18), None);
+
+               run_onion_failure_test("final_incorrect_htlc_amount", 1, &nodes, &route, &payment_hash, |_| {}, || {
+                       // violate amt_to_forward > msg.amount_msat
+                       for (_, mut pending_forwards) in nodes[1].node.channel_state.lock().unwrap().borrow_parts().forward_htlcs.iter_mut() {
+                               for f in pending_forwards.iter_mut() {
+                                       f.forward_info.amt_to_forward -= 1;
+                               }
+                       }
+               }, true, Some(19), None);
+
+               run_onion_failure_test("channel_disabled", 0, &nodes, &route, &payment_hash, |_| {}, || {
+                       // disconnect event to the channel between nodes[1] ~ nodes[2]
+                       nodes[1].node.peer_disconnected(&nodes[2].node.get_our_node_id(), false);
+                       nodes[2].node.peer_disconnected(&nodes[1].node.get_our_node_id(), false);
+               }, true, Some(UPDATE|20), Some(msgs::HTLCFailChannelUpdate::ChannelUpdateMessage{msg: ChannelUpdate::dummy()}));
+               reconnect_nodes(&nodes[1], &nodes[2], (false, false), (0, 0), (0, 0), (0, 0), (0, 0), (false, false));
+
+               run_onion_failure_test("expiry_too_far", 0, &nodes, &route, &payment_hash, |msg| {
+                       let session_priv = SecretKey::from_slice(&::secp256k1::Secp256k1::without_caps(), &[3; 32]).unwrap();
+                       let mut route = route.clone();
+                       let height = 1;
+                       route.hops[1].cltv_expiry_delta += CLTV_FAR_FAR_AWAY + route.hops[0].cltv_expiry_delta + 1;
+                       let onion_keys = ChannelManager::construct_onion_keys(&Secp256k1::new(), &route, &session_priv).unwrap();
+                       let (onion_payloads, _, htlc_cltv) = ChannelManager::build_onion_payloads(&route, height).unwrap();
+                       let onion_packet = ChannelManager::construct_onion_packet(onion_payloads, onion_keys, &payment_hash);
+                       msg.cltv_expiry = htlc_cltv;
+                       msg.onion_routing_packet = onion_packet;
+               }, ||{}, true, Some(21), None);
+       }
 }