diff --git a/wallet/src/main/scala/org/bitcoins/wallet/internal/TransactionProcessing.scala b/wallet/src/main/scala/org/bitcoins/wallet/internal/TransactionProcessing.scala
index 5df88bcb7a..48de150d6c 100644
--- a/wallet/src/main/scala/org/bitcoins/wallet/internal/TransactionProcessing.scala
+++ b/wallet/src/main/scala/org/bitcoins/wallet/internal/TransactionProcessing.scala
@@ -260,7 +260,10 @@ private[wallet] trait TransactionProcessing extends WalletLogger {
           Future.sequence(processedVec)
       }
 
-  protected def processOutgoingUtxos(
+  /** Searches for outputs on the given transaction that are
+    * being spent from our wallet
+    */
+  protected def processSpentUtxos(
       transaction: Transaction,
       blockHashOpt: Option[DoubleSha256DigestBE]): Future[
     Vector[SpendingInfoDb]] = {
@@ -272,21 +275,9 @@ private[wallet] trait TransactionProcessing extends WalletLogger {
           insertTransaction(transaction, blockHashOpt)
         else Future.unit
 
-      // unreserved outputs now they are in a block
-      outputsToUse = blockHashOpt match {
-        case Some(_) =>
-          outputsBeingSpent.map { out =>
-            if (out.state == TxoState.Reserved)
-              out.copyWithState(TxoState.PendingConfirmationsReceived)
-            else out
-          }
-        case None =>
-          outputsBeingSpent
-      }
-
       processed <- Future
         .sequence {
-          outputsToUse.map(markAsSpent(_, transaction.txIdBE))
+          outputsBeingSpent.map(markAsSpent(_, transaction.txIdBE))
         }
         .map(_.toVector.flatten)
 
@@ -309,7 +300,7 @@ private[wallet] trait TransactionProcessing extends WalletLogger {
 
     for {
       incoming <- processIncomingUtxos(transaction, blockHashOpt, newTags)
-      outgoing <- processOutgoingUtxos(transaction, blockHashOpt)
+      outgoing <- processSpentUtxos(transaction, blockHashOpt)
       _ <- walletCallbacks.executeOnTransactionProcessed(logger, transaction)
     } yield {
       ProcessTxResult(incoming, outgoing)
@@ -335,17 +326,25 @@ private[wallet] trait TransactionProcessing extends WalletLogger {
           logger.debug(
             s"Marked utxo=${updated.toHumanReadableString} as state=${updated.state}"))
         updatedF.map(Some(_))
-      case TxoState.Reserved | TxoState.PendingConfirmationsSpent |
-          BroadcastSpent =>
+      case TxoState.Reserved =>
+        val updated =
+          out
+            .copyWithSpendingTxId(spendingTxId)
+            .copyWithState(state = BroadcastSpent)
+        val updatedF = spendingInfoDAO.update(updated)
+        updatedF.map(Some(_))
+      case TxoState.BroadcastSpent =>
+        logger.warn(
+          s"Updating the spendingTxId of a transaction that is already spent, " +
+            s"old state=${TxoState.BroadcastSpent} old spendingTxId=${out.spendingTxIdOpt} new spendingTxId=${spendingTxId}")
         val updated =
           out.copyWithSpendingTxId(spendingTxId)
-        val updatedF =
-          spendingInfoDAO.update(updated)
+        val updatedF = spendingInfoDAO.update(updated)
         updatedF.map(Some(_))
       case TxoState.ImmatureCoinbase =>
         Future.failed(new RuntimeException(
           s"Attempting to spend an ImmatureCoinbase ${out.outPoint.hex}, this should not be possible until it is confirmed."))
-      case TxoState.ConfirmedSpent =>
+      case TxoState.ConfirmedSpent | TxoState.PendingConfirmationsSpent =>
         if (!out.spendingTxIdOpt.contains(spendingTxId)) {
           Future.failed(new RuntimeException(
             s"Attempted to mark an already spent utxo ${out.outPoint.hex} with a new spending tx ${spendingTxId.hex}"))