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Previous to this patch, if an already-spent utxo was proposed by a counterparty, the counterparty would be removed from the proposed transaction but the input (utxo) would not, meaning that the transaction would contain inputs for which signatures were never going to be provided; these transactions simply time out. This was not, of course, intended behaviour, it was intended that the transaction would complete with the valid utxos from the other counterparties. That's what this patch does.master
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