diff --git a/packages/charm-sync/src/__tests__/server.spec.luau b/packages/charm-sync/src/__tests__/server.spec.luau
index 800fa88..a74dd33 100644
--- a/packages/charm-sync/src/__tests__/server.spec.luau
+++ b/packages/charm-sync/src/__tests__/server.spec.luau
@@ -71,7 +71,7 @@ end)
 
 test("should replicate partial state patches (reactive)", function()
 	local client = {}
-	local a: { [string]: number? } = Charm.reactive({ x = 0, y = 0, z = 0 })
+	local a = Charm.reactive({ x = { y = 0 }, z = 0 :: number? })
 	local target, payloads
 
 	server.addSignalsToClient(client, { a = a })
@@ -82,18 +82,24 @@ test("should replicate partial state patches (reactive)", function()
 	server.flush()
 	assert(target == client, "Expected target to be the client")
 	assert(payloads[1].type == "init", "Expected first payload to be init")
-	assert(payloads[1].data.a.x == a.x, "Expected init payload to contain value 'a.x'")
-	assert(payloads[1].data.a.y == a.y, "Expected init payload to contain value 'a.y'")
+	assert(payloads[1].data.a.x ~= nil, "Expected init payload to contain value 'a.x'")
+	assert(payloads[1].data.a.x.y == a.x.y, "Expected init payload to contain value 'a.x.y'")
 	assert(payloads[1].data.a.z == a.z, "Expected init payload to contain value 'a.z'")
 
-	a.x = 1
+	a.x.y = 1
 	a.z = nil
 	server.flush()
 	assert(target == client, "Expected target to be the client")
 	assert(payloads[1].type == "patch", "Expected first payload to be patch")
-	assert(payloads[1].data.a.x == 1, "Expected patch payload to contain value 'a.x'")
-	assert(payloads[1].data.a.y == nil, "Expected patch payload to not contain value 'a.y'")
+	assert(payloads[1].data.a.x.y == 1, "Expected patch payload to contain value 'a.x'")
 	assert(patch.isNone(payloads[1].data.a.z), "Expected patch payload to contain value 'a.z' as None")
+
+	a.z = 1
+	server.flush()
+	assert(target == client, "Expected target to be the client")
+	assert(payloads[1].type == "patch", "Expected first payload to be patch")
+	assert(payloads[1].data.a.z == 1, "Expected patch payload to contain value 'a.z'")
+	assert(payloads[1].data.a.x == nil, "Expected patch payload to not contain value 'a.x'")
 end)
 
 test("should init new clients", function()
diff --git a/packages/charm-sync/src/server.luau b/packages/charm-sync/src/server.luau
index 9624d1c..3605521 100644
--- a/packages/charm-sync/src/server.luau
+++ b/packages/charm-sync/src/server.luau
@@ -88,7 +88,10 @@ local function trackReactive<T>(key: string, proxy: ReactiveProxy<T>)
 
 	trackedState.dispose = Charm.effect(function()
 		api.track()
-		if not config.preserveHistory or firstRun then
+		if not config.preserveHistory then
+			return
+		end
+		if firstRun then
 			firstRun = false
 		else
 			local oldSnapshot = snapshot
diff --git a/packages/charm/src/init.luau b/packages/charm/src/init.luau
index 7d42368..e31702f 100644
--- a/packages/charm/src/init.luau
+++ b/packages/charm/src/init.luau
@@ -933,16 +933,14 @@ end
 ]]
 local function toRaw<T>(value: T): T
 	if type(value) == "table" and getmetatable(value) ~= nil then
-		local proxy: ReactiveProxy = value
-		local api = getmetatable(proxy)
-		if api.value == proxy.__target then
-			-- Track the root proxy since nested proxies are already tracked
+		local value: ReactiveProxy = value
+		local api = getmetatable(value)
+		if api then
 			api.track()
+			return value.__target :: any
 		end
-		return proxy.__target :: any
-	else
-		return value
 	end
+	return value
 end
 
 local reactiveSystem = system.createReactiveSystem({