diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index c0d7026b2..a6d32d8fe 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -881,7 +881,7 @@ class FreqtradeBot:
 
             fully_cancelled = self.update_trade_state(trade, order)
 
-            if (order['side'] == 'buy' and (
+            if (order['side'] == 'buy' and (order['status'] == 'open' or fully_cancelled) and (
                     fully_cancelled
                     or self._check_timed_out('buy', order)
                     or strategy_safe_wrapper(self.strategy.check_buy_timeout,
@@ -890,7 +890,7 @@ class FreqtradeBot:
                                                                    order=order))):
                 self.handle_cancel_buy(trade, order, constants.CANCEL_REASON['TIMEOUT'])
 
-            elif (order['side'] == 'sell' and (
+            elif (order['side'] == 'sell' and (order['status'] == 'open' or fully_cancelled) and (
                   fully_cancelled
                   or self._check_timed_out('sell', order)
                   or strategy_safe_wrapper(self.strategy.check_sell_timeout,
diff --git a/tests/test_freqtradebot.py b/tests/test_freqtradebot.py
index 5c5785ca3..fb4765b48 100644
--- a/tests/test_freqtradebot.py
+++ b/tests/test_freqtradebot.py
@@ -2407,30 +2407,47 @@ def test_handle_cancel_buy_corder_empty(mocker, default_conf, limit_buy_order,
     assert cancel_order_mock.call_count == 1
 
 
-def test_handle_cancel_sell_limit(mocker, default_conf) -> None:
-    patch_RPCManager(mocker)
+def test_handle_cancel_sell_limit(mocker, default_conf, fee) -> None:
+    send_msg_mock = patch_RPCManager(mocker)
     patch_exchange(mocker)
     cancel_order_mock = MagicMock()
     mocker.patch.multiple(
         'freqtrade.exchange.Exchange',
-        cancel_order=cancel_order_mock
+        cancel_order=cancel_order_mock,
     )
+    mocker.patch('freqtrade.freqtradebot.FreqtradeBot.get_sell_rate', return_value=0.245441)
 
     freqtrade = FreqtradeBot(default_conf)
-    freqtrade._notify_sell_cancel = MagicMock()
 
-    trade = MagicMock()
+    trade = Trade(
+        pair='LTC/ETH',
+        amount=2,
+        exchange='binance',
+        open_rate=0.245441,
+        open_order_id="123456",
+        open_date=arrow.utcnow().datetime,
+        fee_open=fee.return_value,
+        fee_close=fee.return_value,
+    )
     order = {'remaining': 1,
              'amount': 1,
              'status': "open"}
     reason = CANCEL_REASON['TIMEOUT']
     assert freqtrade.handle_cancel_sell(trade, order, reason)
     assert cancel_order_mock.call_count == 1
+    assert send_msg_mock.call_count == 1
+
+    send_msg_mock.reset_mock()
+
     order['amount'] = 2
-    assert (freqtrade.handle_cancel_sell(trade, order, reason)
-            == CANCEL_REASON['PARTIALLY_FILLED'])
+    assert freqtrade.handle_cancel_sell(trade, order, reason) == CANCEL_REASON['PARTIALLY_FILLED']
     # Assert cancel_order was not called (callcount remains unchanged)
     assert cancel_order_mock.call_count == 1
+    assert send_msg_mock.call_count == 1
+    assert freqtrade.handle_cancel_sell(trade, order, reason) == CANCEL_REASON['PARTIALLY_FILLED']
+    # Message should not be iterated again
+    assert trade.sell_order_status == CANCEL_REASON['PARTIALLY_FILLED']
+    assert send_msg_mock.call_count == 1
 
 
 def test_handle_cancel_sell_cancel_exception(mocker, default_conf) -> None: