From 66c0fe23da36666373918ebdb6f8dd342d0bdba5 Mon Sep 17 00:00:00 2001
From: user <70670632+stuxf@users.noreply.github.com>
Date: Thu, 30 Apr 2026 22:55:26 -0700
Subject: [PATCH] handle bad reservation counters after spend write

---
 litellm/proxy/proxy_server.py                 | 25 ++++++++--
 tests/test_litellm/proxy/test_proxy_server.py | 48 +++++++++++++++++++
 2 files changed, 68 insertions(+), 5 deletions(-)

diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index e77561a5e59..1a9a53c9840 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -1994,17 +1994,32 @@ async def _reconcile_budget_reservation_for_counter_update(
 
     from litellm.proxy.spend_tracking.budget_reservation import (
         get_reserved_counter_keys,
+        invalidate_budget_reservation_counters,
         reconcile_budget_reservation,
     )
 
     reserved_counter_keys = get_reserved_counter_keys(
         budget_reservation=budget_reservation
     )
-    await reconcile_budget_reservation(
-        budget_reservation=budget_reservation,
-        actual_cost=response_cost or 0.0,
-        finalize=False,
-    )
+    try:
+        await reconcile_budget_reservation(
+            budget_reservation=budget_reservation,
+            actual_cost=response_cost or 0.0,
+            finalize=False,
+        )
+    except Exception:
+        verbose_proxy_logger.warning(
+            "Failed to reconcile budget reservation after persisted spend; invalidating reserved counters and continuing",
+            exc_info=True,
+        )
+        try:
+            await invalidate_budget_reservation_counters(
+                budget_reservation=budget_reservation
+            )
+        except Exception:
+            verbose_proxy_logger.exception(
+                "Failed to invalidate reserved counters after reservation reconciliation failed"
+            )
     return reserved_counter_keys
 
 
diff --git a/tests/test_litellm/proxy/test_proxy_server.py b/tests/test_litellm/proxy/test_proxy_server.py
index 2acb5493775..669bc85856d 100644
--- a/tests/test_litellm/proxy/test_proxy_server.py
+++ b/tests/test_litellm/proxy/test_proxy_server.py
@@ -5532,6 +5532,54 @@ async def test_increment_spend_counters_finalizes_none_cost_reservation():
         ps.spend_counter_cache = orig_counter
 
 
+@pytest.mark.asyncio
+async def test_increment_spend_counters_invalidates_bad_reserved_counter_without_failing():
+    from litellm.caching.dual_cache import DualCache
+    from litellm.proxy.proxy_server import increment_spend_counters
+
+    counter_cache = DualCache()
+    budget_reservation = {
+        "reserved_cost": 0.5,
+        "entries": [
+            {
+                "counter_key": "spend:key:key-bad-reserved-counter",
+                "entity_type": "Key",
+                "entity_id": "key-bad-reserved-counter",
+                "reserved_cost": 0.5,
+                "applied_adjustment": 0.0,
+            }
+        ],
+        "finalized": False,
+    }
+
+    import litellm.proxy.proxy_server as ps
+
+    orig_counter = ps.spend_counter_cache
+    ps.spend_counter_cache = counter_cache
+    try:
+        with patch(
+            "litellm.proxy.proxy_server.verbose_proxy_logger.warning"
+        ) as mock_warning:
+            await increment_spend_counters(
+                token="key-bad-reserved-counter",
+                team_id=None,
+                user_id=None,
+                response_cost=0.25,
+                budget_reservation=budget_reservation,
+            )
+
+        mock_warning.assert_called_once()
+        assert budget_reservation["finalized"] is True
+        assert (
+            counter_cache.in_memory_cache.get_cache(
+                key="spend:key:key-bad-reserved-counter"
+            )
+            is None
+        )
+    finally:
+        ps.spend_counter_cache = orig_counter
+
+
 @pytest.mark.asyncio
 async def test_increment_spend_counter_invalidates_stale_cache_on_redis_failure():
     from litellm.caching.dual_cache import DualCache