Is sending data via UDP sockets on the same machine reliable?

No. I have been bitten by this before. You may wonder how it can possibly fail, but you'll run into issues of buffers of pending packets filling up, and consequently packets will be dropped.

How the network subsystem drops packets is implementation-dependent and not specified anywhere.

In short, no. You shouldn't be making any assumptions about the order of data received on a UDP socket, even over localhost. It might work, it might not, and it's not guaranteed to.

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