diff --git a/CHANGELOG.md b/CHANGELOG.md
index e7f9baf2..5afc0221 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## 0.20.1
+
+BUG FIXES:
+
+- [rpc] fix memory leak in Websocket (when using `/subscribe` method)
+
 ## 0.20.0
 
 *June 6th, 2018*
diff --git a/libs/pubsub/pubsub.go b/libs/pubsub/pubsub.go
index 684ff358..776e0653 100644
--- a/libs/pubsub/pubsub.go
+++ b/libs/pubsub/pubsub.go
@@ -156,6 +156,8 @@ func (s *Server) Subscribe(ctx context.Context, clientID string, query Query, ou
 		if _, ok = s.subscriptions[clientID]; !ok {
 			s.subscriptions[clientID] = make(map[string]Query)
 		}
+		// preserve original query
+		// see Unsubscribe
 		s.subscriptions[clientID][query.String()] = query
 		s.mtx.Unlock()
 		return nil
@@ -314,6 +316,9 @@ func (state *state) remove(clientID string, q Query) {
 		}
 
 		delete(state.queries[q], clientID)
+		if len(state.queries[q]) == 0 {
+			delete(state.queries, q)
+		}
 	}
 }
 
@@ -328,8 +333,10 @@ func (state *state) removeAll(clientID string) {
 		close(ch)
 
 		delete(state.queries[q], clientID)
+		if len(state.queries[q]) == 0 {
+			delete(state.queries, q)
+		}
 	}
-
 	delete(state.clients, clientID)
 }
 
diff --git a/rpc/lib/server/handlers.go b/rpc/lib/server/handlers.go
index b478fd33..6cc03012 100644
--- a/rpc/lib/server/handlers.go
+++ b/rpc/lib/server/handlers.go
@@ -17,7 +17,7 @@ import (
 	"github.com/gorilla/websocket"
 	"github.com/pkg/errors"
 
-	"github.com/tendermint/go-amino"
+	amino "github.com/tendermint/go-amino"
 	types "github.com/tendermint/tendermint/rpc/lib/types"
 	cmn "github.com/tendermint/tmlibs/common"
 	"github.com/tendermint/tmlibs/log"
@@ -613,11 +613,9 @@ func (wsc *wsConnection) readRoutine() {
 			if err != nil {
 				wsc.WriteRPCResponse(types.RPCInternalError(request.ID, err))
 				continue
-			} else {
-				wsc.WriteRPCResponse(types.NewRPCSuccessResponse(wsc.cdc, request.ID, result))
-				continue
 			}
 
+			wsc.WriteRPCResponse(types.NewRPCSuccessResponse(wsc.cdc, request.ID, result))
 		}
 	}
 }
@@ -684,20 +682,20 @@ func (wsc *wsConnection) writeMessageWithDeadline(msgType int, msg []byte) error
 
 //----------------------------------------
 
-// WebsocketManager is the main manager for all websocket connections.
-// It holds the event switch and a map of functions for routing.
+// WebsocketManager provides a WS handler for incoming connections and passes a
+// map of functions along with any additional params to new connections.
 // NOTE: The websocket path is defined externally, e.g. in node/node.go
 type WebsocketManager struct {
 	websocket.Upgrader
+
 	funcMap       map[string]*RPCFunc
 	cdc           *amino.Codec
 	logger        log.Logger
 	wsConnOptions []func(*wsConnection)
 }
 
-// NewWebsocketManager returns a new WebsocketManager that routes according to
-// the given funcMap and connects to the server with the given connection
-// options.
+// NewWebsocketManager returns a new WebsocketManager that passes a map of
+// functions, connection options and logger to new WS connections.
 func NewWebsocketManager(funcMap map[string]*RPCFunc, cdc *amino.Codec, wsConnOptions ...func(*wsConnection)) *WebsocketManager {
 	return &WebsocketManager{
 		funcMap: funcMap,
@@ -718,7 +716,8 @@ func (wm *WebsocketManager) SetLogger(l log.Logger) {
 	wm.logger = l
 }
 
-// WebsocketHandler upgrades the request/response (via http.Hijack) and starts the wsConnection.
+// WebsocketHandler upgrades the request/response (via http.Hijack) and starts
+// the wsConnection.
 func (wm *WebsocketManager) WebsocketHandler(w http.ResponseWriter, r *http.Request) {
 	wsConn, err := wm.Upgrade(w, r, nil)
 	if err != nil {
diff --git a/rpc/lib/server/handlers_test.go b/rpc/lib/server/handlers_test.go
index 86de0e4c..b1ea4675 100644
--- a/rpc/lib/server/handlers_test.go
+++ b/rpc/lib/server/handlers_test.go
@@ -9,15 +9,23 @@ import (
 	"strings"
 	"testing"
 
+	"github.com/gorilla/websocket"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
-	"github.com/tendermint/go-amino"
+	amino "github.com/tendermint/go-amino"
 	rs "github.com/tendermint/tendermint/rpc/lib/server"
 	types "github.com/tendermint/tendermint/rpc/lib/types"
 	"github.com/tendermint/tmlibs/log"
 )
 
+//////////////////////////////////////////////////////////////////////////////
+// HTTP REST API
+// TODO
+
+//////////////////////////////////////////////////////////////////////////////
+// JSON-RPC over HTTP
+
 func testMux() *http.ServeMux {
 	funcMap := map[string]*rs.RPCFunc{
 		"c": rs.NewRPCFunc(func(s string, i int) (string, error) { return "foo", nil }, "s,i"),
@@ -108,3 +116,44 @@ func TestUnknownRPCPath(t *testing.T) {
 	// Always expecting back a 404 error
 	require.Equal(t, http.StatusNotFound, res.StatusCode, "should always return 404")
 }
+
+//////////////////////////////////////////////////////////////////////////////
+// JSON-RPC over WEBSOCKETS
+
+func TestWebsocketManagerHandler(t *testing.T) {
+	s := newWSServer()
+	defer s.Close()
+
+	// check upgrader works
+	d := websocket.Dialer{}
+	c, dialResp, err := d.Dial("ws://"+s.Listener.Addr().String()+"/websocket", nil)
+	require.NoError(t, err)
+
+	if got, want := dialResp.StatusCode, http.StatusSwitchingProtocols; got != want {
+		t.Errorf("dialResp.StatusCode = %q, want %q", got, want)
+	}
+
+	// check basic functionality works
+	req, err := types.MapToRequest(amino.NewCodec(), "TestWebsocketManager", "c", map[string]interface{}{"s": "a", "i": 10})
+	require.NoError(t, err)
+	err = c.WriteJSON(req)
+	require.NoError(t, err)
+
+	var resp types.RPCResponse
+	err = c.ReadJSON(&resp)
+	require.NoError(t, err)
+	require.Nil(t, resp.Error)
+}
+
+func newWSServer() *httptest.Server {
+	funcMap := map[string]*rs.RPCFunc{
+		"c": rs.NewWSRPCFunc(func(wsCtx types.WSRPCContext, s string, i int) (string, error) { return "foo", nil }, "s,i"),
+	}
+	wm := rs.NewWebsocketManager(funcMap, amino.NewCodec())
+	wm.SetLogger(log.TestingLogger())
+
+	mux := http.NewServeMux()
+	mux.HandleFunc("/websocket", wm.WebsocketHandler)
+
+	return httptest.NewServer(mux)
+}
diff --git a/rpc/lib/types/types.go b/rpc/lib/types/types.go
index 1eeb19ea..fe9a9253 100644
--- a/rpc/lib/types/types.go
+++ b/rpc/lib/types/types.go
@@ -7,7 +7,9 @@ import (
 	"strings"
 
 	"github.com/pkg/errors"
-	"github.com/tendermint/go-amino"
+
+	amino "github.com/tendermint/go-amino"
+
 	tmpubsub "github.com/tendermint/tendermint/libs/pubsub"
 )
 
diff --git a/types/event_bus.go b/types/event_bus.go
index 7480c824..cb4b17d5 100644
--- a/types/event_bus.go
+++ b/types/event_bus.go
@@ -9,7 +9,7 @@ import (
 	"github.com/tendermint/tmlibs/log"
 )
 
-const defaultCapacity = 1000
+const defaultCapacity = 0
 
 type EventBusSubscriber interface {
 	Subscribe(ctx context.Context, subscriber string, query tmpubsub.Query, out chan<- interface{}) error