diff --git a/order/manager.go b/order/manager.go
index d80c017..2261f27 100644
--- a/order/manager.go
+++ b/order/manager.go
@@ -275,13 +275,15 @@ func (m *Manager) OrderMatchValidate(batch *Batch) error {
 	// it in case it ends up being the final version.
 	err := m.batchVerifier.Verify(batch)
 	if err != nil {
+		// This error will lead to us sending an OrderMatchReject
+		// message and canceling all funding shims we might already have
+		// set up.
 		return fmt.Errorf("error validating batch: %v", err)
 	}
 
 	m.pendingBatch = batch
 	atomic.StoreUint32(&m.hasPendingBatch, 1)
 
-	// TODO: cancel funding shim of previous pending batch if not nil
 	return nil
 }
 
diff --git a/rpcserver.go b/rpcserver.go
index e3ef71f..aba69dc 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -753,6 +753,30 @@ func (s *rpcServer) handleServerMessage(rpcMsg *clmrpc.ServerAuctionMessage) err
 		rpcLog.Infof("Received PrepareMsg for batch=%x, num_orders=%v",
 			batch.ID[:], len(batch.MatchedOrders))
 
+		// The prepare message can be sent over and over again if the
+		// batch needs adjustment. Clear all previous shims.
+		if s.orderManager.HasPendingBatch() {
+			pendingBatch := s.orderManager.PendingBatch()
+			err := pendingBatch.CancelPendingFundingShims(
+				s.lndClient,
+				func(o order.Nonce) (order.Order, error) {
+					return s.server.db.GetOrder(o)
+				},
+			)
+			if err != nil {
+				// We can't accept the batch, something went
+				// wrong.
+				rpcLog.Errorf("Error clearing previous batch: "+
+					"%v", err)
+				return s.sendRejectBatch(batch, err)
+			}
+
+			// TODO(guggero): Also abandon any channels that might
+			// still be pending from a previous round of the same
+			// batch or a previous batch that we didn't make it into
+			// the final round.
+		}
+
 		// Do an in-depth verification of the batch.
 		err = s.orderManager.OrderMatchValidate(batch)
 		if err != nil {