When no providers are available, reduce all cooldowns by 1 minute.

src/api/providers/virtual-quota-fallback.ts

@@ -240,6 +240,14 @@ export class VirtualQuotaFallbackHandler implements ApiHandler {
 		// No valid handler found
 		if (this.activeProfileId) {
 			await this.notifyHandlerSwitch(undefined, "No Valid Provider")
+
+			// No valid handler found - reduce all cooldowns by 1 minute to gradually
+			// allow providers to become available again instead of blocking indefinitely
+			await Promise.all(
+				this.handlerConfigs.map((c) =>
+					this.usage.reduceCooldown(c.profileId, 1 * 60 * 1000)
+				)
+			);
 		}
 		this.activeHandler = undefined
 		this.activeProfileId = undefined

src/utils/usage-tracker.ts

@@ -109,6 +109,18 @@ export class UsageTracker {
 		await this.memento.update(COOLDOWNS_STORAGE_KEY, allCooldowns)
 	}
 
+	public async reduceCooldown(providerId: string, durationMs: number): Promise<void> {
+		const allCooldowns = await this.getPrunedCooldowns()
+		const currentCooldown = allCooldowns[providerId]
+
+		// Skip if provider has no active cooldown
+		if (!currentCooldown) return
+
+		allCooldowns[providerId] = currentCooldown - durationMs
+
+		await this.memento.update(COOLDOWNS_STORAGE_KEY, allCooldowns)
+	}
+
 	public async isUnderCooldown(providerId: string): Promise<boolean> {
 		const allCooldowns = await this.getPrunedCooldowns()
 		const cooldownUntil = allCooldowns[providerId]