diff --git a/src/bitcoin/mod.rs b/src/bitcoin/mod.rs
index ed2143b9..0cf345e4 100644
--- a/src/bitcoin/mod.rs
+++ b/src/bitcoin/mod.rs
@@ -261,8 +261,18 @@ impl BitcoinInterface for d::BitcoinD {
             // spender for this coin with it and mark it as confirmed.
             for txid in &res.conflicting_txs {
                 if let Some(tx) = tx_getter.get_transaction(txid) {
+                    // FIXME: if a conflict was mined we should somehow wipe the spend_txid of this
+                    // coin.
                     if let Some(block) = tx.block {
-                        spent.push((*op, *txid, block))
+                        // Being part of our watchonly wallet isn't enough, as it could be a
+                        // conflicting transaction which spends a different set of coins. Make sure
+                        // it does actually spend this coin.
+                        for txin in tx.tx.input {
+                            if &txin.previous_output == op {
+                                spent.push((*op, *txid, block));
+                                break;
+                            }
+                        }
                     }
                 }
             }
diff --git a/tests/test_chain.py b/tests/test_chain.py
index 1f79945d..5ae84ea2 100644
--- a/tests/test_chain.py
+++ b/tests/test_chain.py
@@ -480,7 +480,7 @@ def test_spend_replacement(lianad, bitcoind):
         == first_txid
     )
 
-    # Even once the RBF gets merged, the first coin's spend txid isn't updated.
+    # Even once the RBF gets mined, the first coin's spend txid isn't updated.
     bitcoind.generate_block(1, wait_for_mempool=third_txid)
     wait_for(
         lambda: all(
@@ -488,8 +488,7 @@ def test_spend_replacement(lianad, bitcoind):
             for c in lianad.rpc.listcoins([], second_outpoints)["coins"]
         )
     )
-    # FIXME: the code is incorrectly assigning the third txid to the first coin.
-    # assert (
-    # lianad.rpc.listcoins([], [first_outpoints[0]])["coins"][0]["spend_info"]["txid"]
-    # == first_txid
-    # )
+    assert (
+        lianad.rpc.listcoins([], [first_outpoints[0]])["coins"][0]["spend_info"]["txid"]
+        == first_txid
+    )