Closing it off from the web defeats its use case. Limiting sign ups is probably a good first step.. but Does this problem still exist in v1 (pending release)

Seems like a glaring issue like this should be more broadly discussed. Especially for a codebase that is so regularly utilized by the Bitcoin Lightning community

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Not currently. There likely are a lot of other bugs though due to the garbage code quality, and the current payment handling code can register sent payments as not sent in certain cases