diff --git a/jupyter_rtc_core/rooms/yroom.py b/jupyter_rtc_core/rooms/yroom.py
index 37d557c..34c40ee 100644
--- a/jupyter_rtc_core/rooms/yroom.py
+++ b/jupyter_rtc_core/rooms/yroom.py
@@ -15,6 +15,7 @@
     from typing import Literal, Tuple, Any
     from jupyter_server_fileid.manager import BaseFileIdManager
     from jupyter_server.services.contents.manager import AsyncContentsManager, ContentsManager
+    from pycrdt import TransactionEvent
 
 class YRoom:
     """A Room to manage all client connection to one notebook file"""
@@ -69,12 +70,12 @@ def __init__(
             type[YBaseDoc],
             jupyter_ydoc_classes.get(file_type, jupyter_ydoc_classes["file"])
         )
-        self.jupyter_ydoc = JupyterYDocClass(ydoc=self._ydoc, awareness=self._awareness)
+        self._jupyter_ydoc = JupyterYDocClass(ydoc=self._ydoc, awareness=self._awareness)
 
         # Initialize YRoomFileAPI and begin loading content
         self.file_api = YRoomFileAPI(
             room_id=self.room_id,
-            jupyter_ydoc=self.jupyter_ydoc,
+            jupyter_ydoc=self._jupyter_ydoc,
             log=self.log,
             loop=self._loop,
             fileid_manager=fileid_manager,
@@ -88,8 +89,9 @@ def __init__(
             self._on_awareness_update
         )
         self._ydoc_subscription = self._ydoc.observe(
-            lambda event: self._on_ydoc_update(event.update)
+            self._on_ydoc_update
         )
+        self._jupyter_ydoc.observe(self._on_jupyter_ydoc_update)
 
         # Initialize message queue and start background task that routes new
         # messages in the message queue to the appropriate handler method.
@@ -117,7 +119,7 @@ async def get_jupyter_ydoc(self):
         loaded from the ContentsManager.
         """
         await self.file_api.ydoc_content_loaded
-        return self.jupyter_ydoc
+        return self._jupyter_ydoc
     
 
     async def get_ydoc(self):
@@ -297,10 +299,11 @@ def handle_sync_update(self, client_id: str, message: bytes) -> None:
         clients after this method is called via the `self._on_ydoc_update()`
         observer.
         """
-        # Remove client and kill websocket if received SyncUpdate when client is desynced
+        # If client is desynced and sends a SyncUpdate, that results in a
+        # protocol error. Close the WebSocket and return early in this case.
         if self._should_ignore_update(client_id, "SyncUpdate"):
-            self.log.error(f"Should not receive SyncUpdate message when double handshake is not completed for client '{client_id}' and room '{self.room_id}'")
-            self._client_group.remove(client_id)
+            self.clients.remove(client_id)
+            return
 
         # Apply the SyncUpdate to the YDoc
         try:
@@ -315,23 +318,33 @@ def handle_sync_update(self, client_id: str, message: bytes) -> None:
             return
         
 
-    def _on_ydoc_update(self, message_payload: bytes, client_id: str | None = None) -> None:
+    def _on_ydoc_update(self, event: TransactionEvent) -> None:
         """
-        This method is an observer on `self.ydoc` which:
+        This method is an observer on `self._ydoc` which broadcasts a
+        `SyncUpdate` message to all synced clients whenever the YDoc changes.
 
-        - Broadcasts a SyncUpdate message payload to all connected clients by
-        writing to their respective WebSockets,
+        The YDoc is saved in the `self._on_jupyter_ydoc_update()` observer.
+        """
+        update: bytes = event.update
+        message = pycrdt.create_update_message(update)
+        self._broadcast_message(message, message_type="SyncUpdate")
 
-        - Persists the contents of the updated YDoc by writing to disk.
 
-        This method can also be called manually.
+    def _on_jupyter_ydoc_update(self, updated_key: str, *_) -> None:
         """
-        # Broadcast the message
-        message = pycrdt.create_update_message(message_payload)
-        self._broadcast_message(message, message_type="SyncUpdate")
+        This method is an observer on `self._jupyter_ydoc` which saves the file
+        whenever the YDoc changes, unless `updated_key == "state"`.
+
+        The `state` key is used by `jupyter_ydoc` to store temporary data like
+        whether a file is 'dirty' (has unsaved changes). This data is not
+        persisted, so changes to the `state` key should be ignored. Otherwise,
+        an infinite loop of saves will result, as saving sets `dirty = False`.
 
-        # Save the file to disk
-        self.file_api.schedule_save()
+        This observer is separate because `pycrdt.Doc.observe()` does not pass
+        `updated_key` to `self._on_ydoc_update()`.
+        """
+        if updated_key != "state":
+            self.file_api.schedule_save()
 
 
     def handle_awareness_update(self, client_id: str, message: bytes) -> None:
@@ -377,6 +390,15 @@ def _broadcast_message(self, message: bytes, message_type: Literal['AwarenessUpd
         fails. `message_type` is used to produce more readable warnings.
         """
         clients = self.clients.get_all()
+        client_count = len(clients)
+        if not client_count:
+            return
+
+        if message_type == "SyncUpdate":
+            self.log.info(
+                f"Broadcasting SyncUpdate to all {client_count} synced clients."
+            )
+
         for client in clients:
             try:
                 # TODO: remove this assertion once websocket is made required
@@ -389,6 +411,12 @@ def _broadcast_message(self, message: bytes, message_type: Literal['AwarenessUpd
                     f"to client '{client.id}:'"
                 )
                 self.log.exception(e)
+                continue
+        
+        if message_type == "SyncUpdate":
+            self.log.info(
+                f"Broadcast of SyncUpdate complete."
+            )
                 
     def _on_awareness_update(self, type: str, changes: tuple[dict[str, Any], Any]) -> None:
         """
@@ -417,6 +445,7 @@ async def stop(self) -> None:
         # Remove all observers, as updates no longer need to be broadcast
         self._ydoc.unobserve(self._ydoc_subscription)
         self._awareness.unobserve(self._awareness_subscription)
+        self._jupyter_ydoc.unobserve()
 
         # Finish processing all messages, then stop the queue to end the
         # `_process_message_queue()` background task.