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that wasn’t even the issue, the outage was in the hosted .bsky.social accounts. self hosted users could still log in

What is a self-hosted user? Like if you run your own PDS? How do you connect the bsky client app to your own PDS? I thought bsky forces you on to their servers?

it’s a mix of things. your PDS (including self hosted) logs you in and the app directly calls it for “write operations” that modify your account database, whereas the centralized API is used for “read” queries as it keeps an index of network data