token gets lost when using unsupported destination address about packet-forward-middleware

[jtieri]

Oh interesting catch!

Sounds like we need to do some address validation before attempting to do any packet forwarding.
Perhaps just marshaling to bytes and validating the address before doing anything https://github.com/cosmos/cosmos-sdk/blob/42f8d45b686be791c6b18cbbe02b84c91da524bc/types/address.go#L133-L174

[jtieri]

I threw together a test case inside ibctest to verify the described issue.
https://github.com/strangelove-ventures/ibctest/blob/justin/packet-forward/examples/packet_forward_test.go

It look like the middleware works exactly as intended. When initially designing the middleware we had to decide what would happen in the case of a failure during the second hop and we settled on leaving the funds in the intermediary account. This can definitely be confusing as a user since you would initially expect the funds to be returned to the original account. iirc we decided to go this route because there was always the possibility that after a transfer fails the second hop that we could try to revert the funds back to the source chain and have that tx fail as well. This could create even more fees that need to be paid and more confusion.

Billy had opened an issue to improve this design choice #1

[jtieri]

Closing this issue as this was confirmed to be expected behavior.