diff --git a/electrum/lnonion.py b/electrum/lnonion.py
index d996ab521..0f3a7a000 100644
--- a/electrum/lnonion.py
+++ b/electrum/lnonion.py
@@ -396,7 +396,7 @@ class OnionRoutingFailure(Exception):
 
 def construct_onion_error(
         reason: OnionRoutingFailure,
-        onion_packet: OnionPacket,
+        their_public_key: bytes,
         our_onion_private_key: bytes,
 ) -> bytes:
     # create payload
@@ -409,11 +409,14 @@ def construct_onion_error(
     error_packet += pad_len.to_bytes(2, byteorder="big")
     error_packet += bytes(pad_len)
     # add hmac
-    shared_secret = get_ecdh(our_onion_private_key, onion_packet.public_key)
+    shared_secret = get_ecdh(our_onion_private_key, their_public_key)
     um_key = get_bolt04_onion_key(b'um', shared_secret)
     hmac_ = hmac_oneshot(um_key, msg=error_packet, digest=hashlib.sha256)
     error_packet = hmac_ + error_packet
-    # obfuscate
+    return error_packet
+
+def obfuscate_onion_error(error_packet, their_public_key, our_onion_private_key):
+    shared_secret = get_ecdh(our_onion_private_key, their_public_key)
     ammag_key = get_bolt04_onion_key(b'ammag', shared_secret)
     stream_bytes = generate_cipher_stream(ammag_key, len(error_packet))
     error_packet = xor_bytes(error_packet, stream_bytes)
diff --git a/electrum/lnpeer.py b/electrum/lnpeer.py
index 0f9ea9511..6ab700dba 100644
--- a/electrum/lnpeer.py
+++ b/electrum/lnpeer.py
@@ -28,7 +28,7 @@ from .bitcoin import make_op_return, DummyAddress
 from .transaction import PartialTxOutput, match_script_against_template, Sighash
 from .logging import Logger
 from .lnonion import (new_onion_packet, OnionFailureCode, calc_hops_data_for_payment,
-                      process_onion_packet, OnionPacket, construct_onion_error, OnionRoutingFailure,
+                      process_onion_packet, OnionPacket, construct_onion_error, obfuscate_onion_error, OnionRoutingFailure,
                       ProcessedOnionPacket, UnsupportedOnionPacketVersion, InvalidOnionMac, InvalidOnionPubkey,
                       OnionFailureCodeMetaFlag)
 from .lnchannel import Channel, RevokeAndAck, RemoteCtnTooFarInFuture, ChannelState, PeerState, ChanCloseOption, CF_ANNOUNCE_CHANNEL
@@ -2405,7 +2405,9 @@ class Peer(Logger):
                                 onion_packet_bytes=onion_packet_bytes,
                                 onion_packet=onion_packet)
                         except OnionRoutingFailure as e:
-                            error_bytes = construct_onion_error(e, onion_packet, our_onion_private_key=self.privkey)
+                            error_bytes = construct_onion_error(e, onion_packet.public_key, our_onion_private_key=self.privkey)
+                        if error_bytes:
+                            error_bytes = obfuscate_onion_error(error_bytes, onion_packet.public_key, our_onion_private_key=self.privkey)
                     if fw_info:
                         unfulfilled[htlc_id] = local_ctn, remote_ctn, onion_packet_hex, fw_info
                         self.lnworker.downstream_htlc_to_upstream_peer_map[fw_info] = self.pubkey
diff --git a/electrum/lnworker.py b/electrum/lnworker.py
index 2e9c9ba29..ef2f32c77 100644
--- a/electrum/lnworker.py
+++ b/electrum/lnworker.py
@@ -2281,23 +2281,24 @@ class LNWallet(LNWorker):
         info = info._replace(status=status)
         self.save_payment_info(info)
 
-    def _on_maybe_forwarded_htlc_resolved(self, chan: Channel, htlc_id: int) -> None:
+    def is_forwarded_htlc_notify(self, chan: Channel, htlc_id: int) -> None:
         """Called when an HTLC we offered on chan gets irrevocably fulfilled or failed.
         If we find this was a forwarded HTLC, the upstream peer is notified.
         """
         fw_info = chan.short_channel_id.hex(), htlc_id
         upstream_peer_pubkey = self.downstream_htlc_to_upstream_peer_map.get(fw_info)
         if not upstream_peer_pubkey:
-            return
+            return False
         upstream_peer = self.peers.get(upstream_peer_pubkey)
-        if not upstream_peer:
-            return
-        upstream_peer.downstream_htlc_resolved_event.set()
-        upstream_peer.downstream_htlc_resolved_event.clear()
+        if upstream_peer:
+            upstream_peer.downstream_htlc_resolved_event.set()
+            upstream_peer.downstream_htlc_resolved_event.clear()
+        return True
 
     def htlc_fulfilled(self, chan: Channel, payment_hash: bytes, htlc_id: int):
         util.trigger_callback('htlc_fulfilled', payment_hash, chan, htlc_id)
-        self._on_maybe_forwarded_htlc_resolved(chan=chan, htlc_id=htlc_id)
+        if self.is_forwarded_htlc_notify(chan=chan, htlc_id=htlc_id):
+            return
         q = None
         if shi := self.sent_htlcs_info.get((payment_hash, chan.short_channel_id, htlc_id)):
             chan.pop_onion_key(htlc_id)
@@ -2328,7 +2329,8 @@ class LNWallet(LNWorker):
             failure_message: Optional['OnionRoutingFailure']):
 
         util.trigger_callback('htlc_failed', payment_hash, chan, htlc_id)
-        self._on_maybe_forwarded_htlc_resolved(chan=chan, htlc_id=htlc_id)
+        if self.is_forwarded_htlc_notify(chan=chan, htlc_id=htlc_id):
+            return
         q = None
         if shi := self.sent_htlcs_info.get((payment_hash, chan.short_channel_id, htlc_id)):
             onion_key = chan.pop_onion_key(htlc_id)