diff --git a/src/cpp/ripple/LedgerConsensus.cpp b/src/cpp/ripple/LedgerConsensus.cpp
index 8cba7d23e1..784ee068f7 100644
--- a/src/cpp/ripple/LedgerConsensus.cpp
+++ b/src/cpp/ripple/LedgerConsensus.cpp
@@ -373,7 +373,7 @@ void LedgerConsensus::checkLCL()
 	uint256 netLgr = mPrevLedgerHash;
 	int netLgrCount = 0;
 
-	uint256 favoredLedger = (mState == lcsPRE_CLOSE) ? uint256() : mPrevLedgerHash; // Don't get stuck one ledger back
+	uint256 favoredLedger = mPrevLedgerHash; // Don't get stuck one ledger back or jump one forward
 	boost::unordered_map<uint256, currentValidationCount> vals =
 		theApp->getValidations().getCurrentValidations(favoredLedger);
 
@@ -397,7 +397,7 @@ void LedgerConsensus::checkLCL()
 			default:			status = "unknown";
 		}
 
-		cLog(lsWARNING) << "View of consensus changed during consensus (" << netLgrCount << ") status="
+		cLog(lsWARNING) << "View of consensus changed during " << status << " (" << netLgrCount << ") status="
 			<< status << ", " << (mHaveCorrectLCL ? "CorrectLCL" : "IncorrectLCL");
 		cLog(lsWARNING) << mPrevLedgerHash << " to " << netLgr;
 
@@ -966,8 +966,8 @@ void LedgerConsensus::addDisputedTransaction(const uint256& txID, const std::vec
 			txn->setVote(pit.first, cit->second->hasItem(txID));
 	}
 
-	if (!ourVote && theApp->isNewFlag(txID, SF_RELAYED))
-	{ // We voted no and a trusted peer voted yes, so relay
+	if (theApp->isNewFlag(txID, SF_RELAYED))
+	{
 		ripple::TMTransaction msg;
 		msg.set_rawtransaction(&(tx.front()), tx.size());
 		msg.set_status(ripple::tsNEW);
diff --git a/src/cpp/ripple/Log.cpp b/src/cpp/ripple/Log.cpp
index 3758149c08..a9b9cfdba3 100644
--- a/src/cpp/ripple/Log.cpp
+++ b/src/cpp/ripple/Log.cpp
@@ -208,7 +208,7 @@ namespace websocketpp
 
 		void websocketLog(websocketpp::log::alevel::value v, const std::string& entry)
 		{
-			if (v == websocketpp::log::alevel::DEVEL)
+			if ((v == websocketpp::log::alevel::DEVEL) || (v == websocketpp::log::alevel::DEBUG_CLOSE))
 			{
 				if (websocketPartition.doLog(lsTRACE))
 					Log(lsDEBUG, websocketPartition) << entry;
diff --git a/src/js/remote.js b/src/js/remote.js
index 8507c4a3f5..72a9f6b627 100644
--- a/src/js/remote.js
+++ b/src/js/remote.js
@@ -1082,7 +1082,8 @@ Remote.prototype.account_seq = function (account, advance) {
   {
     seq = account_info.seq;
 
-    if (advance) account_info.seq += 1;
+    if (advance === "ADVANCE") account_info.seq += 1;
+    if (advance === "REWIND") account_info.seq -= 1;
 
     // console.log("cached: %s current=%d next=%d", account, seq, account_info.seq);
   }
diff --git a/src/js/transaction.js b/src/js/transaction.js
index 77b8841d4e..61eb541a1e 100644
--- a/src/js/transaction.js
+++ b/src/js/transaction.js
@@ -312,32 +312,59 @@ Transaction.prototype.submit = function (callback) {
   if (self.remote.local_sequence && !self.tx_json.Sequence) {
     self.tx_json.Sequence      = this.remote.account_seq(self.tx_json.Account, 'ADVANCE');
     // console.log("Sequence: %s", self.tx_json.Sequence);
-  }
 
-  if (self.remote.local_sequence && !self.tx_json.Sequence) {
-    // Look in the last closed ledger.
-    this.remote.account_seq_cache(self.tx_json.Account, false)
-      .on('success_account_seq_cache', function () {
-        // Try again.
-        self.submit();
-      })
-      .on('error_account_seq_cache', function (message) {
-        // XXX Maybe be smarter about this. Don't want to trust an untrusted server for this seq number.
+    if (!self.tx_json.Sequence) {
+      // Look in the last closed ledger.
+      this.remote.account_seq_cache(self.tx_json.Account, false)
+        .on('success_account_seq_cache', function () {
+          // Try again.
+          self.submit();
+        })
+        .on('error_account_seq_cache', function (message) {
+          // XXX Maybe be smarter about this. Don't want to trust an untrusted server for this seq number.
 
-        // Look in the current ledger.
-        self.remote.account_seq_cache(self.tx_json.Account, 'CURRENT')
-          .on('success_account_seq_cache', function () {
-            // Try again.
-            self.submit();
-          })
-          .on('error_account_seq_cache', function (message) {
-            // Forward errors.
-            self.emit('error', message);
-          })
-          .request();
-      })
-      .request();
-    return this;
+          // Look in the current ledger.
+          self.remote.account_seq_cache(self.tx_json.Account, 'CURRENT')
+            .on('success_account_seq_cache', function () {
+              // Try again.
+              self.submit();
+            })
+            .on('error_account_seq_cache', function (message) {
+              // Forward errors.
+              self.emit('error', message);
+            })
+            .request();
+        })
+        .request();
+      return this;
+    }
+
+    // If the transaction fails we want to either undo incrementing the sequence
+    // or submit a noop transaction to consume the sequence remotely.
+    this.on('success', function (res) {
+      if (!res || "string" !== typeof res.engine_result) return;
+
+      switch (res.engine_result.slice(0, 3)) {
+        // Synchronous local error
+        case 'tej':
+          self.remote.account_seq(self.tx_json.Account, 'REWIND');
+          break;
+        // XXX: What do we do in case of ter?
+        case 'tel':
+        case 'tem':
+        case 'tef':
+          // XXX Once we have a transaction submission manager class, we can
+          //     check if there are any other transactions pending. If there are,
+          //     we should submit a dummy transaction to ensure those
+          //     transactions are still valid.
+          //var noop = self.remote.transaction().account_set(self.tx_json.Account);
+          //noop.submit();
+
+          // XXX Hotfix. This only works if no other transactions are pending.
+          self.remote.account_seq(self.tx_json.Account, 'REWIND');
+          break;
+      }
+    });
   }
 
   // Prepare request
@@ -345,8 +372,12 @@ Transaction.prototype.submit = function (callback) {
   var request = this.remote.request_submit();
 
   // Forward successes and errors.
-  request.on('success', function (message) { self.emit('success', message); });
-  request.on('error', function (message) { self.emit('error', message); });
+  request.on('success', function (message) {
+    self.emit('success', message);
+  });
+  request.on('error', function (message) {
+    self.emit('error', message);
+  });
 
   if (!this._secret && !this.tx_json.Signature) {
     this.emit('error', {