This behavior is non-compliant[1] with the RFC. Although (from the standpoint of the RFC), everything on the server side (including nginx itself) is considered the web application, nginx probably takes the implicit position that dealing with multiple requests on non-idempotent methods such as POST is really a problem that the proxied web app itself should cope with. But then nginx puts the web app in an untenable pos…
1. nginx times out while server processes request
2. nginx makes request to second server and second server returns "account already exists"
Scenario 2:
1. nginx times out while server processes request and returns error
2. user attempts to create account again and server returns "account already exists"