diff --git a/bin/server b/bin/server
index b489fd9..34c7b0f 100755
--- a/bin/server
+++ b/bin/server
@@ -45,5 +45,14 @@ process.on('SIGTERM', () => {
     process.exit();
 });
 
+process.on('uncaughtException', (err) => {
+    log.error(err);
+    process.exit(1);
+});
+
+process.on('unhandledRejection', (reason, promise) => {
+    log.error(reason);
+});
+
 // vim: ft=javascript
 
diff --git a/bookrc.js b/bookrc.js
deleted file mode 100644
index 9147619..0000000
--- a/bookrc.js
+++ /dev/null
@@ -1,10 +0,0 @@
-/// bookrc logging setup
-const log = require('book').default();
-
-process.on('uncaughtException', (err) => {
-    log.error(err);
-    process.exit(1);
-});
-
-module.exports = log;
-
diff --git a/lib/ClientManager.js b/lib/ClientManager.js
new file mode 100644
index 0000000..0aef2f3
--- /dev/null
+++ b/lib/ClientManager.js
@@ -0,0 +1,204 @@
+import Proxy from './Proxy';
+
+// maybe remove?
+import on_finished from 'on-finished';
+import http from 'http';
+import pump from 'pump';
+
+import rand_id from './rand_id';
+import BindingAgent from './BindingAgent';
+
+const NoOp = () => {};
+
+// Manage sets of clients
+//
+// A client is a "user session" established to service a remote localtunnel client
+class ClientManager {
+    constructor(opt) {
+        this.opt = opt;
+
+        this.reqId = 0;
+
+        // id -> client instance
+        this.clients = Object.create(null);
+
+        // statistics
+        this.stats = {
+            tunnels: 0
+        };
+    }
+
+    stats() {
+        return this.stats;
+    }
+
+    // create a new tunnel with `id`
+    // if the id is already used, a random id is assigned
+    async newClient (id) {
+        const clients = this.clients;
+        const stats = this.stats;
+
+        // can't ask for id already is use
+        if (clients[id]) {
+            id = rand_id();
+        }
+
+        const popt = {
+            id: id,
+            max_tcp_sockets: this.opt.max_tcp_sockets
+        };
+
+        const client = Proxy(popt);
+
+        // add to clients map immediately
+        // avoiding races with other clients requesting same id
+        clients[id] = client;
+
+        client.on('end', () => {
+            --stats.tunnels;
+            delete clients[id];
+        });
+
+        return new Promise((resolve, reject) => {
+            // each local client has a tcp server to link with the remove localtunnel client
+            // this starts the server and waits until it is listening
+            client.start((err, info) => {
+                if (err) {
+                    // clear the reserved client id
+                    delete clients[id];
+                    reject(err);
+                    return;
+                }
+
+                ++stats.tunnels;
+                info.id = id;
+                resolve(info);
+            });
+        });
+    }
+
+    hasClient(id) {
+        return this.clients[id];
+    }
+
+    // handle http request
+    handleRequest(clientId, req, res) {
+        const client = this.clients[clientId];
+        if (!client) {
+            return;
+        }
+
+        const reqId = this.reqId;
+        this.reqId = this.reqId + 1;
+
+        let endRes = () => {
+            endRes = NoOp;
+            res.end();
+        };
+
+        on_finished(res, () => {
+            endRes = NoOp;
+        });
+
+        client.nextSocket((clientSocket) => {
+            // response ended before we even got a socket to respond on
+            if (endRes === NoOp) {
+                return;
+            }
+
+            // happens when client upstream is disconnected (or disconnects)
+            // and the proxy iterates the waiting list and clears the callbacks
+            // we gracefully inform the user and kill their conn
+            // without this, the browser will leave some connections open
+            // and try to use them again for new requests
+            // TODO(roman) we could instead have a timeout above
+            // if no socket becomes available within some time,
+            // we just tell the user no resource available to service request
+            if (!clientSocket) {
+                endRes();
+                return;
+            }
+
+            const agent = new BindingAgent({
+                socket: clientSocket,
+            });
+
+            const opt = {
+                path: req.url,
+                agent: agent,
+                method: req.method,
+                headers: req.headers
+            };
+
+            return new Promise((resolve) => {
+                // what if error making this request?
+                const clientReq = http.request(opt, (clientRes) => {
+                    // write response code and headers
+                    res.writeHead(clientRes.statusCode, clientRes.headers);
+
+                    // when this pump is done, we end our response
+                    pump(clientRes, res, (err) => {
+                        endRes();
+                        resolve();
+                    });
+                });
+
+                // we don't care about when this ends, only if there is error
+                pump(req, clientReq, (err) => {
+                    if (err) {
+                        endRes();
+                        resolve();
+                    }
+                });
+            });
+        });
+    }
+
+    // handle http upgrade
+    handleUpgrade(clientId, req, sock) {
+        const client = this.clients[clientId];
+        if (!client) {
+            return;
+        }
+
+        client.nextSocket(async (clientSocket) => {
+            if (!sock.readable || !sock.writable) {
+                sock.end();
+                return;
+            }
+
+            // happens when client upstream is disconnected (or disconnects)
+            // and the proxy iterates the waiting list and clears the callbacks
+            // we gracefully inform the user and kill their conn
+            // without this, the browser will leave some connections open
+            // and try to use them again for new requests
+            // TODO(roman) we could instead have a timeout above
+            // if no socket becomes available within some time,
+            // we just tell the user no resource available to service request
+            if (!clientSocket) {
+                sock.end();
+                return;
+            }
+
+            // websocket requests are special in that we simply re-create the header info
+            // then directly pipe the socket data
+            // avoids having to rebuild the request and handle upgrades via the http client
+            const arr = [`${req.method} ${req.url} HTTP/${req.httpVersion}`];
+            for (let i=0 ; i < (req.rawHeaders.length-1) ; i+=2) {
+                arr.push(`${req.rawHeaders[i]}: ${req.rawHeaders[i+1]}`);
+            }
+
+            arr.push('');
+            arr.push('');
+
+            clientSocket.pipe(sock).pipe(clientSocket);
+            clientSocket.write(arr.join('\r\n'));
+
+            await new Promise((resolve) => {
+                sock.once('end', resolve);
+            });
+        });
+    }
+}
+
+export default ClientManager;
diff --git a/lib/Proxy.js b/lib/Proxy.js
index a791a7f..ccd0ebf 100644
--- a/lib/Proxy.js
+++ b/lib/Proxy.js
@@ -16,6 +16,8 @@ const Proxy = function(opt) {
     self.waiting = [];
     self.id = opt.id;
 
+    self.activeSockets = 0;
+
     // default max is 10
     self.max_tcp_sockets = opt.max_tcp_sockets || 10;
 
@@ -72,6 +74,8 @@ Proxy.prototype._maybe_destroy = function() {
     const self = this;
 
     clearTimeout(self.conn_timeout);
+
+    // After last socket is gone, we give opportunity to connect again quickly
     self.conn_timeout = setTimeout(function() {
         // sometimes the server is already closed but the event has not fired?
         try {
@@ -81,7 +85,7 @@ Proxy.prototype._maybe_destroy = function() {
         catch (err) {
             self._cleanup();
         }
-    }, 5000);
+    }, 1000);
 }
 
 // new socket connection from client for tunneling requests to client
@@ -89,16 +93,19 @@ Proxy.prototype._handle_socket = function(socket) {
     const self = this;
 
     // no more socket connections allowed
-    if (self.sockets.length >= self.max_tcp_sockets) {
+    if (self.activeSockets >= self.max_tcp_sockets) {
         return socket.end();
     }
 
+    self.activeSockets = self.activeSockets + 1;
+
     self.debug('new connection from: %s:%s', socket.address().address, socket.address().port);
 
     // a single connection is enough to keep client id slot open
     clearTimeout(self.conn_timeout);
 
     socket.once('close', function(had_error) {
+        self.activeSockets = self.activeSockets - 1;
         self.debug('closed socket (error: %s)', had_error);
 
         // what if socket was servicing a request at this time?
@@ -133,10 +140,10 @@ Proxy.prototype._handle_socket = function(socket) {
 
 Proxy.prototype._process_waiting = function() {
     const self = this;
-    const wait_cb = self.waiting.shift();
-    if (wait_cb) {
+    const fn = self.waiting.shift();
+    if (fn) {
         self.debug('handling queued request');
-        self.next_socket(wait_cb);
+        self.nextSocket(fn);
     }
 };
 
@@ -152,48 +159,31 @@ Proxy.prototype._cleanup = function() {
     self.emit('end');
 };
 
-Proxy.prototype.next_socket = function(handler) {
+Proxy.prototype.nextSocket = async function(fn) {
     const self = this;
 
     // socket is a tcp connection back to the user hosting the site
     const sock = self.sockets.shift();
-
     if (!sock) {
-        self.debug('no more client, queue callback');
-        self.waiting.push(handler);
+        self.debug('no more clients, queue callback');
+        self.waiting.push(fn);
         return;
     }
 
     self.debug('processing request');
-    handler(sock)
-    .then(() => {
-        if (!sock.destroyed) {
-            self.debug('retuning socket');
-            self.sockets.push(sock);
-        }
+    await fn(sock);
 
-        // no sockets left to process waiting requests
-        if (self.sockets.length === 0) {
-            return;
-        }
+    if (!sock.destroyed) {
+        self.debug('retuning socket');
+        self.sockets.push(sock);
+    }
 
-        self._process_waiting();
-    })
-    .catch((err) => {
-        log.error(err);
+    // no sockets left to process waiting requests
+    if (self.sockets.length === 0) {
+        return;
+    }
 
-        if (!sock.destroyed) {
-            self.debug('retuning socket');
-            self.sockets.push(sock);
-        }
-
-        // no sockets left to process waiting requests
-        if (self.sockets.length === 0) {
-            return;
-        }
-
-        self._process_waiting();
-    })
+    self._process_waiting();
 };
 
 Proxy.prototype._done = function() {
diff --git a/package.json b/package.json
index 3ed63dd..0ba80a0 100644
--- a/package.json
+++ b/package.json
@@ -18,6 +18,7 @@
     "localenv": "0.2.2",
     "on-finished": "2.3.0",
     "optimist": "0.6.1",
+    "pump": "2.0.0",
     "tldjs": "1.6.2"
   },
   "devDependencies": {
diff --git a/server.js b/server.js
index 946dc8f..b67d708 100644
--- a/server.js
+++ b/server.js
@@ -1,233 +1,24 @@
 import log from 'book';
 import Koa from 'koa';
 import tldjs from 'tldjs';
-import on_finished from 'on-finished';
 import Debug from 'debug';
 import http from 'http';
 import Promise from 'bluebird';
 
-import Proxy from './lib/Proxy';
+import ClientManager from './lib/ClientManager';
 import rand_id from './lib/rand_id';
-import BindingAgent from './lib/BindingAgent';
 
 const debug = Debug('localtunnel:server');
 
-const PRODUCTION = process.env.NODE_ENV === 'production';
-
-// id -> client http server
-const clients = Object.create(null);
-
-// proxy statistics
-const stats = {
-    tunnels: 0
-};
-
-// handle proxying a request to a client
-// will wait for a tunnel socket to become available
-function DoBounce(req, res, sock) {
-    req.on('error', (err) => {
-        console.error('request', err);
-    });
-
-    if (res) {
-        res.on('error', (err) => {
-            console.error('response', err);
-        });
-    }
-
-    if (sock) {
-        sock.on('error', (err) => {
-            console.error('response', err);
-        });
-    }
-
-    // without a hostname, we won't know who the request is for
-    const hostname = req.headers.host;
-    if (!hostname) {
-        return false;
-    }
-
-    const subdomain = tldjs.getSubdomain(hostname);
-    if (!subdomain) {
-        return false;
-    }
-
-    const client = clients[subdomain];
-
-    // no such subdomain
-    // we use 502 error to the client to signify we can't service the request
-    if (!client) {
-        if (res) {
-            res.statusCode = 502;
-            res.end(`no active client for '${subdomain}'`);
-            req.connection.destroy();
-        }
-        else if (sock) {
-            sock.destroy();
-        }
-
-        return true;
-    }
-
-    let finished = false;
-    if (sock) {
-        sock.once('end', function() {
-            finished = true;
-        });
-    }
-    else if (res) {
-        // flag if we already finished before we get a socket
-        // we can't respond to these requests
-        on_finished(res, function(err) {
-            finished = true;
-            req.connection.destroy();
-        });
-    }
-    // not something we are expecting, need a sock or a res
-    else {
-        req.connection.destroy();
-        return true;
-    }
-
-    // TODO add a timeout, if we run out of sockets, then just 502
-
-    // get client port
-    client.next_socket(async (socket) => {
-        // the request already finished or client disconnected
-        if (finished) {
-            return;
-        }
-
-        // happens when client upstream is disconnected (or disconnects)
-        // and the proxy iterates the waiting list and clears the callbacks
-        // we gracefully inform the user and kill their conn
-        // without this, the browser will leave some connections open
-        // and try to use them again for new requests
-        // we cannot have this as we need bouncy to assign the requests again
-        // TODO(roman) we could instead have a timeout above
-        // if no socket becomes available within some time,
-        // we just tell the user no resource available to service request
-        else if (!socket) {
-            if (res) {
-                res.statusCode = 504;
-                res.end();
-            }
-
-            if (sock) {
-                sock.destroy();
-            }
-
-            req.connection.destroy();
-            return;
-        }
-
-        // websocket requests are special in that we simply re-create the header info
-        // and directly pipe the socket data
-        // avoids having to rebuild the request and handle upgrades via the http client
-        if (res === null) {
-            const arr = [`${req.method} ${req.url} HTTP/${req.httpVersion}`];
-            for (let i=0 ; i < (req.rawHeaders.length-1) ; i+=2) {
-                arr.push(`${req.rawHeaders[i]}: ${req.rawHeaders[i+1]}`);
-            }
-
-            arr.push('');
-            arr.push('');
-
-            socket.pipe(sock).pipe(socket);
-            socket.write(arr.join('\r\n'));
-
-            await new Promise((resolve) => {
-                socket.once('end', resolve);
-            });
-
-            return;
-        }
-
-        // regular http request
-
-        const agent = new BindingAgent({
-            socket: socket
-        });
-
-        const opt = {
-            path: req.url,
-            agent: agent,
-            method: req.method,
-            headers: req.headers
-        };
-
-        await new Promise((resolve) => {
-            // what if error making this request?
-            const client_req = http.request(opt, function(client_res) {
-                // write response code and headers
-                res.writeHead(client_res.statusCode, client_res.headers);
-
-                client_res.pipe(res);
-                on_finished(client_res, function(err) {
-                    resolve();
-                });
-            });
-
-            // happens if the other end dies while we are making the request
-            // so we just end the req and move on
-            // we can't really do more with the response here because headers
-            // may already be sent
-            client_req.on('error', (err) => {
-                req.connection.destroy();
-            });
-
-            req.pipe(client_req);
-        });
-    });
-
-    return true;
-}
-
-// create a new tunnel with `id`
-// if the id is already used, a random id is assigned
-const NewClient = async (id, opt) => {
-    // can't ask for id already is use
-    if (clients[id]) {
-        id = rand_id();
-    }
-
-    const popt = {
-        id: id,
-        max_tcp_sockets: opt.max_tcp_sockets
-    };
-
-    const client = Proxy(popt);
-
-    // add to clients map immediately
-    // avoiding races with other clients requesting same id
-    clients[id] = client;
-
-    client.on('end', function() {
-        --stats.tunnels;
-        delete clients[id];
-    });
-
-    return new Promise((resolve, reject) => {
-        // each local client has a tcp server to link with the remove localtunnel client
-        // this starts the server and waits until it is listening
-        client.start((err, info) => {
-            if (err) {
-                // clear the reserved client id
-                delete clients[id];
-                reject(err);
-                return;
-            }
-
-            ++stats.tunnels;
-            info.id = id;
-            resolve(info);
-        });
-    });
+function GetClientIdFromHostname(hostname) {
+    return tldjs.getSubdomain(hostname);
 }
 
 module.exports = function(opt) {
     opt = opt || {};
 
+    const manager = new ClientManager(opt);
+
     const schema = opt.secure ? 'https' : 'http';
 
     const app = new Koa();
@@ -240,6 +31,8 @@ module.exports = function(opt) {
             return;
         }
 
+        const stats = manager.stats();
+
         ctx.body = {
             tunnels: stats.tunnels,
             mem: process.memoryUsage(),
@@ -260,7 +53,7 @@ module.exports = function(opt) {
         if (isNewClientRequest) {
             const req_id = rand_id();
             debug('making new client with id %s', req_id);
-            const info = await NewClient(req_id, opt);
+            const info = await manager.newClient(req_id);
 
             const url = schema + '://' + info.id + '.' + ctx.request.host;
             info.url = url;
@@ -298,7 +91,7 @@ module.exports = function(opt) {
         }
 
         debug('making new client with id %s', req_id);
-        const info = await NewClient(req_id, opt);
+        const info = await manager.newClient(req_id);
 
         const url = schema + '://' + info.id + '.' + ctx.request.host;
         info.url = url;
@@ -310,17 +103,46 @@ module.exports = function(opt) {
 
     const appCallback = app.callback();
     server.on('request', (req, res) => {
-        if (DoBounce(req, res, null)) {
+        // without a hostname, we won't know who the request is for
+        const hostname = req.headers.host;
+        if (!hostname) {
+            res.statusCode = 400;
+            res.end('Host header is required');
             return;
         }
 
-        appCallback(req, res);
+        const clientId = GetClientIdFromHostname(hostname);
+        if (!clientId) {
+            appCallback(req, res);
+            return;
+        }
+
+        if (manager.hasClient(clientId)) {
+            manager.handleRequest(clientId, req, res);
+            return;
+        }
+
+        res.statusCode = 404;
+        res.end('404');
     });
 
     server.on('upgrade', (req, socket, head) => {
-        if (DoBounce(req, null, socket)) {
+        const hostname = req.headers.host;
+        if (!hostname) {
+            sock.destroy();
             return;
-        };
+        }
+
+        const clientId = GetClientIdFromHostname(hostname);
+        if (!clientId) {
+            sock.destroy();
+            return;
+        }
+
+        if (manager.hasClient(clientId)) {
+            manager.handleUpgrade(clientId, req, socket);
+            return;
+        }
 
         socket.destroy();
     });
diff --git a/test/basic.js b/test/basic.js
index ed66574..f1c829d 100644
--- a/test/basic.js
+++ b/test/basic.js
@@ -5,9 +5,17 @@ var localtunnel = require('localtunnel');
 
 var localtunnel_server = require('../server')();
 
+process.on('uncaughtException', (err) => {
+    console.error(err);
+});
+
+process.on('unhandledRejection', (reason, promise) => {
+    console.error(reason);
+});
+
 suite('basic');
 
-var lt_server_port
+var lt_server_port;
 
 before('set up localtunnel server', function(done) {
     var server = localtunnel_server.listen(function() {
diff --git a/yarn.lock b/yarn.lock
index cb78bca..265f847 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -436,6 +436,12 @@ ee-first@1.1.1:
   version "1.1.1"
   resolved "https://registry.yarnpkg.com/ee-first/-/ee-first-1.1.1.tgz#590c61156b0ae2f4f0255732a158b266bc56b21d"
 
+end-of-stream@^1.1.0:
+  version "1.4.0"
+  resolved "https://registry.yarnpkg.com/end-of-stream/-/end-of-stream-1.4.0.tgz#7a90d833efda6cfa6eac0f4949dbb0fad3a63206"
+  dependencies:
+    once "^1.4.0"
+
 error-ex@^1.2.0:
   version "1.3.1"
   resolved "https://registry.yarnpkg.com/error-ex/-/error-ex-1.3.1.tgz#f855a86ce61adc4e8621c3cda21e7a7612c3a8dc"
@@ -1087,6 +1093,12 @@ on-finished@2.3.0, on-finished@^2.1.0:
   dependencies:
     ee-first "1.1.1"
 
+once@^1.3.1, once@^1.4.0:
+  version "1.4.0"
+  resolved "https://registry.yarnpkg.com/once/-/once-1.4.0.tgz#583b1aa775961d4b113ac17d9c50baef9dd76bd1"
+  dependencies:
+    wrappy "1"
+
 only@0.0.2:
   version "0.0.2"
   resolved "https://registry.yarnpkg.com/only/-/only-0.0.2.tgz#2afde84d03e50b9a8edc444e30610a70295edfb4"
@@ -1174,6 +1186,13 @@ process-nextick-args@~1.0.6:
   version "1.0.7"
   resolved "https://registry.yarnpkg.com/process-nextick-args/-/process-nextick-args-1.0.7.tgz#150e20b756590ad3f91093f25a4f2ad8bff30ba3"
 
+pump@2.0.0:
+  version "2.0.0"
+  resolved "https://registry.yarnpkg.com/pump/-/pump-2.0.0.tgz#7946da1c8d622b098e2ceb2d3476582470829c9d"
+  dependencies:
+    end-of-stream "^1.1.0"
+    once "^1.3.1"
+
 qs@~5.2.0:
   version "5.2.1"
   resolved "https://registry.yarnpkg.com/qs/-/qs-5.2.1.tgz#801fee030e0b9450d6385adc48a4cc55b44aedfc"
@@ -1443,6 +1462,10 @@ wrap-ansi@^2.0.0:
     string-width "^1.0.1"
     strip-ansi "^3.0.1"
 
+wrappy@1:
+  version "1.0.2"
+  resolved "https://registry.yarnpkg.com/wrappy/-/wrappy-1.0.2.tgz#b5243d8f3ec1aa35f1364605bc0d1036e30ab69f"
+
 ws@0.8.0:
   version "0.8.0"
   resolved "https://registry.yarnpkg.com/ws/-/ws-0.8.0.tgz#ac60ebad312121d01e16cc3383d7ec67ad0f0f1f"