diff --git a/core/src/commonMain/kotlin/com/powersync/connectors/PowerSyncBackendConnector.kt b/core/src/commonMain/kotlin/com/powersync/connectors/PowerSyncBackendConnector.kt
index 08632477..1d85e864 100644
--- a/core/src/commonMain/kotlin/com/powersync/connectors/PowerSyncBackendConnector.kt
+++ b/core/src/commonMain/kotlin/com/powersync/connectors/PowerSyncBackendConnector.kt
@@ -25,7 +25,9 @@ abstract class PowerSyncBackendConnector {
      * These credentials may have expired already.
      */
     suspend fun getCredentialsCached(): PowerSyncCredentials? {
-        cachedCredentials?.let { return it }
+        if (cachedCredentials != null) {
+            return cachedCredentials
+        }
         return prefetchCredentials()
     }
 
@@ -51,6 +53,7 @@ abstract class PowerSyncBackendConnector {
         fetchRequest = fetchRequest ?: GlobalScope.async {
             fetchCredentials().also { value ->
                 cachedCredentials = value
+                fetchRequest = null
             }
         }
 
diff --git a/core/src/commonMain/kotlin/com/powersync/sync/SyncStream.kt b/core/src/commonMain/kotlin/com/powersync/sync/SyncStream.kt
index a6014a6d..62426950 100644
--- a/core/src/commonMain/kotlin/com/powersync/sync/SyncStream.kt
+++ b/core/src/commonMain/kotlin/com/powersync/sync/SyncStream.kt
@@ -17,8 +17,10 @@ import io.ktor.client.request.get
 import io.ktor.client.request.headers
 import io.ktor.client.request.preparePost
 import io.ktor.client.request.setBody
+import io.ktor.client.statement.bodyAsText
 import io.ktor.http.ContentType
 import io.ktor.http.HttpHeaders
+import io.ktor.http.HttpStatusCode
 import io.ktor.http.contentType
 import io.ktor.utils.io.*
 import kotlinx.coroutines.delay
@@ -84,15 +86,21 @@ class SyncStream(
                     connector.invalidateCredentials()
                     invalidCredentials = false
                 }
-                streamingSyncIteration()
+                val state = streamingSyncIteration()
+                if (!state.retry) {
+                    break;
+                }
             } catch (e: Exception) {
                 println("SyncStream::streamingSync Error: $e")
                 invalidCredentials = true
+                updateStatus(
+                    downloadError = e
+                )
+            } finally {
                 updateStatus(
                     connected = false,
                     connecting = true,
                     downloading = false,
-                    downloadError = e
                 )
                 delay(retryDelay)
             }
@@ -180,6 +188,14 @@ class SyncStream(
         }
 
         request.execute { httpResponse ->
+            if (httpResponse.status.value == 401) {
+                connector.invalidateCredentials()
+            }
+
+            if (httpResponse.status != HttpStatusCode.OK) {
+                throw RuntimeException("Received error when connecting to sync stream: ${httpResponse.bodyAsText()}")
+            }
+
             val channel: ByteReadChannel = httpResponse.body()
 
             while (!channel.isClosedForRead) {
@@ -191,7 +207,7 @@ class SyncStream(
         }
     }
 
-    private suspend fun streamingSyncIteration() {
+    private suspend fun streamingSyncIteration(): SyncStreamState {
         val bucketEntries = bucketStorage.getBucketStates()
         val initialBuckets = mutableMapOf<String, String>()
 
@@ -211,14 +227,11 @@ class SyncStream(
             buckets = initialBuckets.map { (bucket, after) -> BucketRequest(bucket, after) },
         )
 
-        streamingSyncRequest(req).retryWhen { cause, attempt ->
-            println("SyncStream::streamingSyncIteration Error: $cause")
-            delay(retryDelay)
-            println("SyncStream::streamingSyncIteration Retrying attempt: $attempt")
-            true
-        }.collect { value ->
+        streamingSyncRequest(req).collect { value ->
             handleInstruction(value, state)
         }
+
+        return state;
     }
 
     private suspend fun handleInstruction(
@@ -368,6 +381,7 @@ class SyncStream(
         if (tokenExpiresIn <= 0) {
             // Connection would be closed automatically right after this
             println("Token expiring reconnect")
+            connector.invalidateCredentials()
             state.retry = true
             return state
         }
diff --git a/demos/hello-powersync/iosApp/Podfile.lock b/demos/hello-powersync/iosApp/Podfile.lock
index 2f512b40..8c576a1c 100644
--- a/demos/hello-powersync/iosApp/Podfile.lock
+++ b/demos/hello-powersync/iosApp/Podfile.lock
@@ -20,4 +20,4 @@ SPEC CHECKSUMS:
 
 PODFILE CHECKSUM: 4680f51fbb293d1385fb2467ada435cc1f16ab3d
 
-COCOAPODS: 1.14.3
+COCOAPODS: 1.13.0