diff --git a/app/src/main/java/com/zulip/android/activities/ExpandableStreamDrawerAdapter.java b/app/src/main/java/com/zulip/android/activities/ExpandableStreamDrawerAdapter.java
index 663e285fb..070447fb0 100644
--- a/app/src/main/java/com/zulip/android/activities/ExpandableStreamDrawerAdapter.java
+++ b/app/src/main/java/com/zulip/android/activities/ExpandableStreamDrawerAdapter.java
@@ -7,7 +7,6 @@
 
 import com.zulip.android.ZulipApp;
 import com.zulip.android.models.Message;
-import com.zulip.android.models.Stream;
 import com.zulip.android.util.ZLog;
 
 import java.sql.SQLException;
@@ -31,19 +30,22 @@ public ExpandableStreamDrawerAdapter(final Context context, Cursor cursor, int g
 
     @Override
     public Cursor getChildrenCursor(Cursor groupCursor) {
+        int pointer = zulipApp.getPointer();
         List<String[]> results = new ArrayList<>();
         try {
-            results = ZulipApp.get().getDao(Message.class).queryRaw("SELECT DISTINCT subject FROM messages " +
-                    "JOIN streams ON streams.id=messages.stream " +
-                    "WHERE streams.id=" + groupCursor.getInt(0) + " and streams." + Stream.SUBSCRIBED_FIELD + " = " + "1 group by subject").getResults();
+            results = zulipApp.getDao(Message.class).queryRaw("SELECT DISTINCT subject, " +
+                    "count(case when messages.id > " + pointer + " and (messages." +
+                    Message.MESSAGE_READ_FIELD + " = 0) then 1 end) as unreadcount FROM messages " +
+                    "JOIN streams ON streams.name=messages.recipients " +
+                    "WHERE streams.name LIKE ? group by subject", groupCursor.getString(1)).getResults();
         } catch (SQLException e) {
             ZLog.logException(e);
         }
-        MatrixCursor matrixCursor = new MatrixCursor(new String[]{"subject", "_id"});
+        MatrixCursor matrixCursor = new MatrixCursor(new String[]{"subject", "_id", UNREAD_TABLE_NAME});
 
         for (String[] result : results) {
             try {
-                matrixCursor.addRow(new String[]{result[0], String.valueOf(groupCursor.getInt(0))});
+                matrixCursor.addRow(new String[]{result[0], String.valueOf(groupCursor.getInt(0)), result[1]});
             } catch (Exception e) {
                 ZLog.logException(e);
             }
diff --git a/app/src/main/java/com/zulip/android/activities/MessageListFragment.java b/app/src/main/java/com/zulip/android/activities/MessageListFragment.java
index 4957d62b3..cda7a1468 100644
--- a/app/src/main/java/com/zulip/android/activities/MessageListFragment.java
+++ b/app/src/main/java/com/zulip/android/activities/MessageListFragment.java
@@ -26,7 +26,9 @@
 import android.widget.TextView;
 import android.widget.Toast;
 
+import com.j256.ormlite.dao.Dao;
 import com.j256.ormlite.stmt.QueryBuilder;
+import com.j256.ormlite.stmt.UpdateBuilder;
 import com.j256.ormlite.stmt.Where;
 import com.zulip.android.R;
 import com.zulip.android.ZulipApp;
@@ -65,6 +67,7 @@
  * initiated and called by {@link ZulipActivity}
  */
 public class MessageListFragment extends Fragment implements MessageListener {
+    public static final String LOG_TAG = MessageListFragment.class.getSimpleName();
     private static final String PARAM_FILTER = "filter";
     public NarrowFilter filter;
     public ZulipApp app;
@@ -261,7 +264,7 @@ private void initializeNarrow() {
         adapter.setFooterShowing(true);
     }
 
-    public void onReadyToDisplay(boolean registered) {
+    public void onReadyToDisplay(boolean registered, boolean startup) {
         if (initialized && !registered) {
             // Already have state, and already processed any events that came in
             // when resuming the existing queue.
@@ -270,9 +273,13 @@ public void onReadyToDisplay(boolean registered) {
             Log.i("onReadyToDisplay", "just a resume");
             return;
         }
-
         initializeNarrow();
-        fetch();
+        if (startup) {
+            // fetch 1000 messages after pointer on startup
+            fetch(app.getPointer(), 1000);
+        } else {
+            fetch(app.getPointer(), 100);
+        }
         initialized = true;
     }
 
@@ -293,18 +300,23 @@ public void onReadyToDisplay(boolean registered, int messageId) {
         }
 
         initializeNarrow();
-        fetch(messageId);
+        fetch(messageId, 100);
         initialized = true;
     }
 
-
     private void showEmptyView() {
         Log.d("ErrorRecieving", "No Messages found for current list" + ((filter != null) ? ":" + filter.getTitle() : ""));
         recyclerView.setVisibility(View.GONE);
         emptyTextView.setVisibility(View.VISIBLE);
     }
 
-    private void fetch() {
+    /**
+     * Fetches all messages past current pointer and calls {@link #skipAllMessages()}
+     * to marks messages as read, update pointer and scroll to latest message.
+     *
+     * @param messagesFetched number of messages fetched in preceding call
+     */
+    public void fetchAllMessages(final int messagesFetched, final CommonProgressDialog dialog) {
         final AsyncGetOldMessages oldMessagesReq = new AsyncGetOldMessages(this);
         oldMessagesReq.setCallback(new ZulipAsyncPushTask.AsyncTaskCompleteListener() {
             @Override
@@ -312,7 +324,15 @@ public void onTaskComplete(String result, JSONObject jsonObject) {
                 loadingMessages = false;
                 adapter.setHeaderShowing(false);
                 if (result.equals("0")) {
-                    showEmptyView();
+                    skipAllMessages();
+                    dialog.dismiss();
+                    Toast.makeText(getContext(), R.string.bankruptcy_confirmation_msg, Toast.LENGTH_SHORT).show();
+                } else {
+                    try {
+                        fetchAllMessages(messagesFetched + Integer.parseInt(result), dialog);
+                    } catch (NumberFormatException e) {
+                        Log.e(LOG_TAG, "fetchAllMessages()", e);
+                    }
                 }
             }
 
@@ -322,8 +342,52 @@ public void onTaskFailure(String result) {
                 adapter.setHeaderShowing(false);
             }
         });
-        oldMessagesReq.execute(app.getPointer(), LoadPosition.INITIAL, 100,
-                100, filter);
+        oldMessagesReq.execute(app.getPointer() + messagesFetched, LoadPosition.INITIAL, 0,
+                200, filter);
+    }
+
+    /**
+     * Marks all messages as read, updates pointer and scrolls to last message.
+     */
+    private void skipAllMessages() {
+        // mark all messages as read
+        try {
+            markAllMessagesAsRead();
+        } catch (SQLException e) {
+            Toast.makeText(getContext(), R.string.try_again_error_msg, Toast.LENGTH_SHORT).show();
+            ZLog.logException(e);
+        }
+
+        // sync pointer to latest message
+        int lastMessageId = app.getMaxMessageId();
+        app.syncPointer(lastMessageId);
+
+        // scroll to latest message
+        try {
+            RecyclerMessageAdapter adapter = getAdapter();
+            int lastMsgIndex = adapter.getItemIndex(lastMessageId);
+            if (lastMsgIndex != -1) {
+                recyclerView.scrollToPosition(lastMsgIndex);
+            } else {
+                // when the current narrow doesn't contain the latest message
+                // do nothing
+            }
+        } catch (NullPointerException e) {
+            Toast.makeText(getContext(), R.string.try_again_error_msg, Toast.LENGTH_SHORT).show();
+            ZLog.logException(e);
+        }
+    }
+
+    /**
+     * Marks all messages as read after current pointer.
+     * @throws SQLException
+     */
+    private void markAllMessagesAsRead() throws SQLException {
+        Dao<Message, Integer> messageDao = app.getDao(Message.class);
+        UpdateBuilder builder = messageDao.updateBuilder();
+        builder.where().ge(Message.ID_FIELD, app.getPointer());
+        builder.updateColumnValue(Message.MESSAGE_READ_FIELD, true);
+        builder.update();
     }
 
     /**
@@ -332,8 +396,8 @@ public void onTaskFailure(String result) {
      *
      * @param messageID anchor message id
      */
-    private void fetch(int messageID) {
-        // set the achor for fetching messages as the message clicked
+    private void fetch(int messageID, int messages) {
+        // set the anchor for fetching messages as the message clicked
         this.anchorId = messageID;
 
         final AsyncGetOldMessages oldMessagesReq = new AsyncGetOldMessages(this);
@@ -354,7 +418,7 @@ public void onTaskFailure(String result) {
             }
         });
         oldMessagesReq.execute(messageID, LoadPosition.INITIAL, 100,
-                100, filter);
+                messages, filter);
     }
 
     private void selectPointer() {
diff --git a/app/src/main/java/com/zulip/android/activities/RecyclerMessageAdapter.java b/app/src/main/java/com/zulip/android/activities/RecyclerMessageAdapter.java
index 304e98612..94a3b5f9d 100644
--- a/app/src/main/java/com/zulip/android/activities/RecyclerMessageAdapter.java
+++ b/app/src/main/java/com/zulip/android/activities/RecyclerMessageAdapter.java
@@ -42,7 +42,6 @@
 import com.zulip.android.viewholders.MessageHeaderParent;
 import com.zulip.android.viewholders.MessageHolder;
 
-import java.sql.SQLException;
 import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.HashMap;
@@ -449,19 +448,8 @@ private void markThisMessageAsRead(Message message) {
             if (!startedFromFilter && zulipApp.getPointer() < mID) {
                 zulipApp.syncPointer(mID);
             }
-
-            boolean isMessageRead = false;
-            if (message.getMessageRead() != null) {
-                isMessageRead = message.getMessageRead();
-            }
-            if (!isMessageRead) {
-                try {
-                    updateBuilder.where().eq(Message.ID_FIELD, message.getID());
-                    updateBuilder.updateColumnValue(Message.MESSAGE_READ_FIELD, true);
-                    updateBuilder.update();
-                } catch (SQLException e) {
-                    ZLog.logException(e);
-                }
+            if (!message.getMessageRead()) {
+                // leaving message update to "update_message_flag" event
                 zulipApp.markMessageAsRead(message);
             }
         } catch (NullPointerException e) {
diff --git a/app/src/main/java/com/zulip/android/activities/ZulipActivity.java b/app/src/main/java/com/zulip/android/activities/ZulipActivity.java
index 1ea800a07..454c4c7f5 100644
--- a/app/src/main/java/com/zulip/android/activities/ZulipActivity.java
+++ b/app/src/main/java/com/zulip/android/activities/ZulipActivity.java
@@ -20,8 +20,10 @@
 import android.database.MatrixCursor;
 import android.database.MergeCursor;
 import android.graphics.Bitmap;
+import android.graphics.Color;
 import android.graphics.PorterDuff;
 import android.graphics.drawable.Drawable;
+import android.graphics.drawable.GradientDrawable;
 import android.net.Uri;
 import android.os.Build;
 import android.os.Bundle;
@@ -671,8 +673,10 @@ private Callable<Cursor> getSteamCursorGenerator() {
         Callable<Cursor> steamCursorGenerator = new Callable<Cursor>() {
             @Override
             public Cursor call() throws Exception {
-                String query = "SELECT s.id as _id,  s.name, s.color"
-                        + " FROM streams as s LEFT JOIN messages as m ON s.id=m.stream ";
+                int pointer = app.getPointer();
+                String query = "SELECT s.id as _id,  s.name, s.color, count(case when m.id > " + pointer + " and (m." + Message.MESSAGE_READ_FIELD
+                        + " = 0)"+ " then 1 end) as " + ExpandableStreamDrawerAdapter.UNREAD_TABLE_NAME
+                        + " FROM streams as s LEFT JOIN messages as m ON s." + Stream.NAME_FIELD + " = m." + Message.RECIPIENTS_FIELD;
                 String selectArg = null;
                 if (!etSearchStream.getText().toString().equals("") && !etSearchStream.getText().toString().isEmpty()) {
                     //append where clause
@@ -1193,11 +1197,11 @@ public void onAnimationRepeat(Animator animator) {
      */
     private void setupListViewAdapter() {
         streamsDrawerAdapter = null;
-        String[] groupFrom = {Stream.NAME_FIELD, Stream.COLOR_FIELD};
-        int[] groupTo = {R.id.name, R.id.stream_dot};
+        String[] groupFrom = {Stream.NAME_FIELD, Stream.COLOR_FIELD, ExpandableStreamDrawerAdapter.UNREAD_TABLE_NAME};
+        int[] groupTo = {R.id.name, R.id.stream_dot, R.id.unread_group};;
         // Comparison of data elements and View
-        String[] childFrom = {Message.SUBJECT_FIELD};
-        int[] childTo = {R.id.name_child};
+        String[] childFrom = {Message.SUBJECT_FIELD, ExpandableStreamDrawerAdapter.UNREAD_TABLE_NAME};
+        int[] childTo = {R.id.name_child, R.id.unread_child};
         final ExpandableListView streamsDrawer = (ExpandableListView) findViewById(R.id.streams_drawer);
         streamsDrawer.setGroupIndicator(null);
         try {
@@ -1257,14 +1261,6 @@ public boolean setViewValue(View view, Cursor cursor, int columnIndex) {
                         } else {
                             name.setTextColor(ContextCompat.getColor(ZulipActivity.this, R.color.colorTextPrimary));
                         }
-                        view.setOnClickListener(new View.OnClickListener() {
-                            @Override
-                            public void onClick(View v) {
-                                resetStreamSearch();
-                                doNarrowToLastRead(streamName);
-                                onNarrowFillSendBoxStream(streamName, "", false);
-                            }
-                        });
                         return true;
                     case R.id.stream_dot:
                         // Set the color of the (currently white) dot
@@ -1274,17 +1270,30 @@ public void onClick(View v) {
                         return true;
                     case R.id.unread_group:
                         TextView unreadGroupTextView = (TextView) view;
+                        // set appropriate size for background drawable
+                        GradientDrawable backgroundGroup = (GradientDrawable) unreadGroupTextView.getBackground();
+                        backgroundGroup.mutate();
                         final String unreadGroupCount = cursor.getString(columnIndex);
-//                        if (unreadGroupCount.equals("0")) {
-//                            unreadGroupTextView.setVisibility(View.GONE);
-//                        } else {
-//                            unreadGroupTextView.setText(unreadGroupCount);
-//                            unreadGroupTextView.setVisibility(View.VISIBLE);
-//                        }
+                        int groupSize = findBubbleSize(unreadGroupCount);
+                        backgroundGroup.setSize(groupSize, groupSize);
+                        if (unreadGroupCount.equals("0")) {
+                            unreadGroupTextView.setVisibility(View.GONE);
+                        } else {
+                            unreadGroupTextView.setText(unreadGroupCount);
+                            unreadGroupTextView.setVisibility(View.VISIBLE);
+                        }
                         return true;
                     case R.id.unread_child:
                         TextView unreadChildTextView = (TextView) view;
+                        // change background drawable color of child unread count to faint gray
+                        GradientDrawable backgroundChild = (GradientDrawable) unreadChildTextView.getBackground();
+                        backgroundChild.mutate();
+                        backgroundChild.setColor(Color.LTGRAY);
+
+                        // set appropriate size for background of drawable
                         final String unreadChildNumber = cursor.getString(columnIndex);
+                        int childSize = findBubbleSize(unreadChildNumber);
+                        backgroundChild.setSize(childSize, childSize);
                         if (unreadChildNumber.equals("0")) {
                             unreadChildTextView.setVisibility(View.GONE);
                         } else {
@@ -1306,6 +1315,28 @@ public void onClick(View v) {
         streamsDrawer.setAdapter(streamsDrawerAdapter);
     }
 
+    private int findBubbleSize(String strCounts) {
+        int counts = 0;
+        try {
+            counts = Integer.parseInt(strCounts);
+        } catch (NumberFormatException e) {
+            ZLog.logException(e);
+            return counts;
+        }
+
+        int size;
+        if (counts / 10 == 0) {
+            size = (int) getResources().getDimension(R.dimen.small_bubble);
+        } else if (counts / 100 == 0) {
+            size = (int) getResources().getDimension(R.dimen.medium_bubble);
+        } else if (counts / 1000 == 0) {
+            size = (int) getResources().getDimension(R.dimen.large_bubble);
+        } else {
+            size = (int) getResources().getDimension(R.dimen.extra_large_bubble);
+        }
+        return size;
+    }
+
     /**
      * Helper function used to call {@link ZulipActivity#onNarrow(NarrowFilter, int)} or
      * {@link ZulipActivity#onNarrow(NarrowFilter)} based on last message read in {@param streamName} stream.
@@ -1853,7 +1884,7 @@ public void doNarrow(NarrowFilter filter) {
         narrowedList = MessageListFragment.newInstance(filter);
         // Push to the back stack if we are not already narrowed
         pushListFragment(narrowedList, NARROW);
-        narrowedList.onReadyToDisplay(true);
+        narrowedList.onReadyToDisplay(true, false);
         showView(appBarLayout);
     }
 
@@ -2107,6 +2138,9 @@ public void onDateSet(DatePicker view, int year, int month, int dayOfMonth) {
                 datePickerDialog.getDatePicker().setMaxDate(new Date().getTime());
                 datePickerDialog.show();
                 break;
+            case R.id.bankruptcy:
+                declareBankruptcy();
+                break;
             case R.id.logout:
                 logout();
                 break;
@@ -2119,6 +2153,30 @@ public void onDateSet(DatePicker view, int year, int month, int dayOfMonth) {
         return true;
     }
 
+    private void declareBankruptcy() {
+        AlertDialog.Builder builder = new AlertDialog.Builder(this);
+        final CommonProgressDialog progressDialog = new CommonProgressDialog(this);
+        progressDialog.showWithMessage(getString(R.string.bankruptcy_progress_dialog));
+        builder.setMessage(R.string.bankruptcy_alert_message)
+                .setTitle(R.string.bankruptcy);
+        builder.setPositiveButton(android.R.string.ok, new DialogInterface.OnClickListener() {
+            public void onClick(DialogInterface dialog, int id) {
+                // fetch all messages past current pointer
+                if (narrowedList != null) {
+                    onBackPressed();
+                }
+                homeList.fetchAllMessages(0, progressDialog);
+            }
+        });
+        builder.setNegativeButton(android.R.string.cancel, new DialogInterface.OnClickListener() {
+            public void onClick(DialogInterface dialog, int id) {
+               // do nothing
+            }
+        });
+        AlertDialog dialog = builder.create();
+        dialog.show();
+    }
+
     /**
      * Switches the current Day/Night mode to Night/Day mode
      *
@@ -2250,10 +2308,10 @@ private void startRequests() {
 
     }
 
-    public void onReadyToDisplay(boolean registered) {
-        homeList.onReadyToDisplay(registered);
+    public void onReadyToDisplay(boolean registered, boolean startup) {
+        homeList.onReadyToDisplay(registered, startup);
         if (narrowedList != null) {
-            narrowedList.onReadyToDisplay(registered);
+            narrowedList.onReadyToDisplay(registered, startup);
         }
     }
 
diff --git a/app/src/main/java/com/zulip/android/database/DatabaseHelper.java b/app/src/main/java/com/zulip/android/database/DatabaseHelper.java
index 53c55e4e1..ded7d9594 100644
--- a/app/src/main/java/com/zulip/android/database/DatabaseHelper.java
+++ b/app/src/main/java/com/zulip/android/database/DatabaseHelper.java
@@ -30,7 +30,7 @@ public class DatabaseHelper extends OrmLiteSqliteOpenHelper {
     private static final String DATABASE_NAME = "zulip-%s.db";
     // any time you make changes to your database objects, you may have to
     // increase the database version
-    private static final int DATABASE_VERSION = 8;
+    private static final int DATABASE_VERSION = 9;
 
     public DatabaseHelper(ZulipApp app, String email) {
         super(app, String.format(DATABASE_NAME, MD5Util.md5Hex(email)), null,
diff --git a/app/src/main/java/com/zulip/android/models/Message.java b/app/src/main/java/com/zulip/android/models/Message.java
index 559829209..bbebb326c 100644
--- a/app/src/main/java/com/zulip/android/models/Message.java
+++ b/app/src/main/java/com/zulip/android/models/Message.java
@@ -90,6 +90,8 @@ public class Message {
     private String senderShortName;
     @SerializedName("subject_links")
     private List<?> subjectLinks;
+    @SerializedName("flags")
+    private List<String> flags;
     @DatabaseField(foreign = true, columnName = SENDER_FIELD, foreignAutoRefresh = true)
     private Person sender;
     @SerializedName("type")
@@ -116,7 +118,7 @@ public class Message {
     @DatabaseField(foreign = true, columnName = STREAM_FIELD, foreignAutoRefresh = true)
     private Stream stream;
     @DatabaseField(columnName = MESSAGE_READ_FIELD)
-    private Boolean messageRead;
+    private boolean messageRead;
     @DatabaseField(columnDefinition = MESSAGE_EDITED)
     private Boolean hasBeenEdited;
     //endregion
@@ -243,6 +245,9 @@ public Void call() throws Exception {
                             stream = Stream.getByName(app, m.getRecipients());
                         }
                         m.setStream(stream);
+                        if (m.getFlags() != null) {
+                            m.setMessageRead(m.getFlags().contains(Message.MESSAGE_READ_FIELD));
+                        }
                         messageDao.createOrUpdate(m);
                     }
                     return null;
@@ -371,11 +376,11 @@ public static HTMLSchema getSchema() {
         return schema;
     }
 
-    public Boolean getMessageRead() {
+    public boolean getMessageRead() {
         return messageRead;
     }
 
-    public void setMessageRead(Boolean messageRead) {
+    public void setMessageRead(boolean messageRead) {
         this.messageRead = messageRead;
     }
 
@@ -757,4 +762,8 @@ public String getDisplayRecipient() {
             return displayRecipient;
         }
     }
+
+    public List<String> getFlags() {
+        return this.flags;
+    }
 }
diff --git a/app/src/main/java/com/zulip/android/models/Stream.java b/app/src/main/java/com/zulip/android/models/Stream.java
index ad9337b23..2b594208f 100644
--- a/app/src/main/java/com/zulip/android/models/Stream.java
+++ b/app/src/main/java/com/zulip/android/models/Stream.java
@@ -175,6 +175,7 @@ public static Message getLastMessageRead(ZulipApp app, String streamName) {
             // query for message in given stream and orderby timestamp decreasingly
             return messageDao.queryBuilder().orderBy(Message.TIMESTAMP_FIELD, false)
                     .where().eq(Message.RECIPIENTS_FIELD, new SelectArg(Message.RECIPIENTS_FIELD, streamName))
+                    .and().eq(Message.MESSAGE_READ_FIELD, true)
                     .queryForFirst();
         } catch (SQLException e) {
             ZLog.logException(e);
diff --git a/app/src/main/java/com/zulip/android/networking/AsyncGetEvents.java b/app/src/main/java/com/zulip/android/networking/AsyncGetEvents.java
index 8a18f77a2..7833d2eef 100644
--- a/app/src/main/java/com/zulip/android/networking/AsyncGetEvents.java
+++ b/app/src/main/java/com/zulip/android/networking/AsyncGetEvents.java
@@ -10,6 +10,7 @@
 import com.j256.ormlite.dao.Dao;
 import com.j256.ormlite.dao.RuntimeExceptionDao;
 import com.j256.ormlite.misc.TransactionManager;
+import com.j256.ormlite.stmt.UpdateBuilder;
 import com.zulip.android.R;
 import com.zulip.android.ZulipApp;
 import com.zulip.android.activities.LoginActivity;
@@ -27,6 +28,7 @@
 import com.zulip.android.networking.response.events.MutedTopicsWrapper;
 import com.zulip.android.networking.response.events.StreamWrapper;
 import com.zulip.android.networking.response.events.SubscriptionWrapper;
+import com.zulip.android.networking.response.events.UpdateMessageFlagsWrapper;
 import com.zulip.android.networking.response.events.UpdateMessageWrapper;
 import com.zulip.android.util.MutedTopics;
 import com.zulip.android.util.TypeSwapper;
@@ -220,7 +222,8 @@ public Void call() throws Exception {
                     @Override
                     public void run() {
                         mActivity.getPeopleAdapter().refresh();
-                        mActivity.onReadyToDisplay(true);
+                        // fetch 1000 messages on startup
+                        mActivity.onReadyToDisplay(true, true);
                         mActivity.checkAndSetupStreamsDrawer();
                         if (mActivity.commonProgressDialog != null && mActivity.commonProgressDialog.isShowing()) {
                             mActivity.commonProgressDialog.dismiss();
@@ -290,7 +293,7 @@ public void run() {
                             mActivity.runOnUiThread(new Runnable() {
                                 @Override
                                 public void run() {
-                                    mActivity.onReadyToDisplay(false);
+                                    mActivity.onReadyToDisplay(false, false);
                                 }
                             });
                         }
@@ -366,12 +369,12 @@ public Message convert(MessageWrapper messageWrapper) {
             processUpdateMessages(updateMessageEvents);
         }
 
-        // get message time limit events
-        List<EventsBranch> messageTimeLimit = events.getEventsOfBranchType(EventsBranch.BranchType.EDIT_MESSAGE_TIME_LIMIT);
-        if (!messageTimeLimit.isEmpty()) {
-            Log.i("AsyncGetEvents", "Received " + messageTimeLimit.size()
-                    + " realm event");
-            processMessageEditParam(messageTimeLimit);
+        // update message flags
+        List<EventsBranch> updateMessageFlags = events.getEventsOfBranchType(EventsBranch.BranchType.UPDATE_MESSAGE_FLAGS);
+        if (!updateMessageFlags.isEmpty()) {
+            Log.i("AsyncGetEvents", "Received " + updateMessageFlags.size()
+                    + " update message flags");
+            processUpdateMessageFlags(updateMessageFlags);
         }
 
         // get stream events
@@ -382,6 +385,13 @@ public Message convert(MessageWrapper messageWrapper) {
             processStreams(streamEvents);
         }
 
+        // get message time limit events
+        List<EventsBranch> messageTimeLimit = events.getEventsOfBranchType(EventsBranch.BranchType.EDIT_MESSAGE_TIME_LIMIT);
+        if (!messageTimeLimit.isEmpty()) {
+            Log.i("AsyncGetEvents", "Received " + messageTimeLimit.size()
+                    + " realm event");
+            processMessageEditParam(messageTimeLimit);
+        }
     }
 
     /**
@@ -456,7 +466,7 @@ private void processSubsciptions(List<EventsBranch> subscriptionWrapperList) thr
         mActivity.runOnUiThread(new Runnable() {
             @Override
             public void run() {
-                mActivity.onReadyToDisplay(true);
+                mActivity.onReadyToDisplay(true, false);
                 mActivity.checkAndSetupStreamsDrawer();
             }
         });
@@ -478,7 +488,7 @@ private void processMutedTopics(List<EventsBranch> genericMutedTopics) {
         mActivity.runOnUiThread(new Runnable() {
             @Override
             public void run() {
-                mActivity.onReadyToDisplay(true);
+                mActivity.onReadyToDisplay(true, false);
                 mActivity.checkAndSetupStreamsDrawer();
             }
         });
@@ -559,4 +569,44 @@ public void processStreams(List<EventsBranch> events) {
             }
         }
     }
+
+    private void processUpdateMessageFlags(List<EventsBranch> eventList) {
+        for (EventsBranch event : eventList) {
+            UpdateMessageFlagsWrapper updateMsgFlag = (UpdateMessageFlagsWrapper) event;
+            switch (updateMsgFlag.getFlag()) {
+                case "read":
+                    markMessagesAsRead(updateMsgFlag.getMessageIds());
+                    break;
+                default:
+                    Log.d("AsyncEvents", "unhandled update_message_flags event");
+            }
+        }
+    }
+
+    private void markMessagesAsRead(List<Integer> messageIds) {
+        Dao<Message, Integer> messageDao = app.getDao(Message.class);
+        if (messageDao == null) {
+            return;
+        }
+        for (Integer id : messageIds) {
+            if (id != null) {
+                try {
+                    UpdateBuilder<Message, Integer> updateBuilder = messageDao.updateBuilder();
+                    updateBuilder.where().eq(Message.ID_FIELD, id).and().eq(Message.MESSAGE_READ_FIELD, false);
+                    updateBuilder.updateColumnValue(Message.MESSAGE_READ_FIELD, true);
+                    updateBuilder.update();
+                } catch (SQLException e) {
+                    ZLog.logException(e);
+                }
+            }
+        }
+
+        // update streams and people drawers to reflect updated unread counts
+        mActivity.runOnUiThread(new Runnable() {
+            @Override
+            public void run() {
+                mActivity.checkAndSetupStreamsDrawer();
+            }
+        });
+    }
 }
diff --git a/app/src/main/java/com/zulip/android/networking/response/events/EventsBranch.java b/app/src/main/java/com/zulip/android/networking/response/events/EventsBranch.java
index 3d4ac4eb9..bdd9fdc22 100644
--- a/app/src/main/java/com/zulip/android/networking/response/events/EventsBranch.java
+++ b/app/src/main/java/com/zulip/android/networking/response/events/EventsBranch.java
@@ -28,7 +28,8 @@ public enum BranchType {
         MUTED_TOPICS(MutedTopicsWrapper.class, "muted_topics"),
         EDIT_MESSAGE_TIME_LIMIT(EditMessageWrapper.class, "realm"),
         UPDATE_MESSAGE(UpdateMessageWrapper.class, "update_message"),
-        STREAM(StreamWrapper.class, "stream");
+        STREAM(StreamWrapper.class, "stream"),
+        UPDATE_MESSAGE_FLAGS(UpdateMessageFlagsWrapper.class, "update_message_flags");
 
 
         private final Class<? extends EventsBranch> klazz;
diff --git a/app/src/main/java/com/zulip/android/networking/response/events/UpdateMessageFlagsWrapper.java b/app/src/main/java/com/zulip/android/networking/response/events/UpdateMessageFlagsWrapper.java
new file mode 100644
index 000000000..10fae6937
--- /dev/null
+++ b/app/src/main/java/com/zulip/android/networking/response/events/UpdateMessageFlagsWrapper.java
@@ -0,0 +1,28 @@
+package com.zulip.android.networking.response.events;
+
+import com.google.gson.annotations.SerializedName;
+
+import java.util.List;
+
+/**
+ * This class is used to deserialize the update_message_flags type events {@link EventsBranch.BranchType#UPDATE_MESSAGE_FLAGS}.
+ * example: {"all":false,"timestamp":1488246444.8514339924,"messages":[6,7,9,10,14],"flag":"read","operation":"add","type":"update_message_flags","id":12}
+ * {"all":false,"timestamp":1488247612.6961550713,"messages":[55],"flag":"starred","operation":"add","type":"update_message_flags","id":3}
+ * {"all":false,"timestamp":1488247614.0365629196,"messages":[55],"flag":"starred","operation":"remove","type":"update_message_flags","id":4}
+ */
+
+public class UpdateMessageFlagsWrapper extends EventsBranch {
+    @SerializedName("messages")
+    private List<Integer> messageIds;
+
+    @SerializedName("flag")
+    private String flag;
+
+    public String getFlag() {
+        return this.flag;
+    }
+
+    public List<Integer> getMessageIds() {
+        return this.messageIds;
+    }
+}
diff --git a/app/src/main/res/drawable/unread_counts_background.xml b/app/src/main/res/drawable/unread_counts_background.xml
new file mode 100644
index 000000000..aed147982
--- /dev/null
+++ b/app/src/main/res/drawable/unread_counts_background.xml
@@ -0,0 +1,8 @@
+<?xml version="1.0" encoding="utf-8"?>
+<shape xmlns:android="http://schemas.android.com/apk/res/android"
+    android:shape="oval">
+    <size
+        android:width="18dp"
+        android:height="18dp" />
+    <solid android:color="@color/colorPrimaryDark" />
+</shape>
\ No newline at end of file
diff --git a/app/src/main/res/layout-v21/stream_tile_child.xml b/app/src/main/res/layout-v21/stream_tile_child.xml
new file mode 100644
index 000000000..4469ccff8
--- /dev/null
+++ b/app/src/main/res/layout-v21/stream_tile_child.xml
@@ -0,0 +1,50 @@
+<?xml version="1.0" encoding="utf-8"?>
+<RelativeLayout xmlns:android="http://schemas.android.com/apk/res/android"
+    android:id="@+id/name_child_container"
+    android:layout_width="match_parent"
+    android:layout_height="wrap_content"
+    android:layout_gravity="center_vertical"
+    android:text="@string/topic"
+    android:textColor="@color/colorTextSecondary"
+    android:textSize="16sp">
+
+    <TextView
+        android:id="@+id/name_child"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:layout_alignParentLeft="true"
+        android:layout_alignParentStart="true"
+        android:layout_alignParentTop="true"
+        android:layout_gravity="center_vertical"
+        android:layout_toLeftOf="@+id/child_container"
+        android:layout_marginLeft="54dp"
+        android:paddingBottom="16dp"
+        android:paddingLeft="16dp"
+        android:paddingRight="16dp"
+        android:paddingTop="16dp"
+        android:text="Subject"
+        android:textColor="@color/colorTextSecondary"
+        android:textSize="16sp" />
+
+    <FrameLayout
+        android:id="@+id/child_container"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:layout_alignParentEnd="true"
+        android:layout_alignParentRight="true"
+        android:layout_centerVertical="true"
+        android:layout_gravity="center_vertical|end"
+        android:layout_marginEnd="30dp"
+        android:layout_marginRight="30dp">
+        <TextView
+            android:id="@+id/unread_child"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:background="@drawable/unread_counts_background"
+            android:elevation="2dp"
+            android:gravity="center"
+            android:textColor="@android:color/white"
+            android:text="2"
+            android:visibility="gone" />
+    </FrameLayout>
+</RelativeLayout>
\ No newline at end of file
diff --git a/app/src/main/res/layout-v21/stream_tile_new.xml b/app/src/main/res/layout-v21/stream_tile_new.xml
new file mode 100644
index 000000000..16835fd78
--- /dev/null
+++ b/app/src/main/res/layout-v21/stream_tile_new.xml
@@ -0,0 +1,52 @@
+<?xml version="1.0" encoding="utf-8"?>
+<RelativeLayout xmlns:android="http://schemas.android.com/apk/res/android"
+    android:layout_width="match_parent"
+    android:layout_height="48dp"
+    android:orientation="horizontal">
+
+    <View
+        android:id="@+id/stream_dot"
+        android:layout_width="16dp"
+        android:layout_height="16dp"
+        android:layout_centerVertical="true"
+        android:layout_gravity="center_vertical"
+        android:layout_marginLeft="16dp"
+        android:background="@drawable/dot" />
+
+    <FrameLayout
+        android:id="@+id/group_container"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:layout_alignParentEnd="true"
+        android:layout_alignParentRight="true"
+        android:layout_alignTop="@+id/stream_dot"
+        android:layout_gravity="center_vertical|end"
+        android:layout_marginEnd="30dp"
+        android:layout_marginRight="30dp">
+        <TextView
+            android:id="@+id/unread_group"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:background="@drawable/unread_counts_background"
+            android:gravity="center"
+            android:textColor="@android:color/white"
+            android:textAppearance="?android:attr/textAppearanceSmall"
+            android:elevation="2dp"
+            android:visibility="visible" />
+    </FrameLayout>
+
+    <TextView
+        android:id="@+id/name"
+        android:layout_width="wrap_content"
+        android:layout_height="wrap_content"
+        android:layout_centerVertical="true"
+        android:layout_gravity="center_vertical"
+        android:layout_marginLeft="20dp"
+        android:layout_marginStart="20dp"
+        android:layout_toEndOf="@+id/stream_dot"
+        android:layout_toRightOf="@+id/stream_dot"
+        android:padding="5dp"
+        android:text="MyStream"
+        android:textColor="@color/colorTextPrimary"
+        android:textSize="18sp" />
+</RelativeLayout>
\ No newline at end of file
diff --git a/app/src/main/res/layout/stream_tile_child.xml b/app/src/main/res/layout/stream_tile_child.xml
index 1352ad4c7..f9f78b07e 100644
--- a/app/src/main/res/layout/stream_tile_child.xml
+++ b/app/src/main/res/layout/stream_tile_child.xml
@@ -16,6 +16,7 @@
         android:layout_alignParentStart="true"
         android:layout_alignParentTop="true"
         android:layout_gravity="center_vertical"
+        android:layout_toLeftOf="@+id/child_container"
         android:layout_marginLeft="54dp"
         android:paddingBottom="16dp"
         android:paddingLeft="16dp"
@@ -25,15 +26,24 @@
         android:textColor="@color/colorTextSecondary"
         android:textSize="16sp" />
 
-    <TextView
-        android:id="@+id/unread_child"
+    <FrameLayout
+        android:id="@+id/child_container"
         android:layout_width="wrap_content"
         android:layout_height="wrap_content"
         android:layout_alignParentEnd="true"
         android:layout_alignParentRight="true"
         android:layout_centerVertical="true"
+        android:layout_gravity="center_vertical|end"
         android:layout_marginEnd="30dp"
-        android:layout_marginRight="30dp"
-        android:text="2"
-        android:visibility="gone" />
-</RelativeLayout>
+        android:layout_marginRight="30dp">
+        <TextView
+            android:id="@+id/unread_child"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:background="@drawable/unread_counts_background"
+            android:gravity="center"
+            android:textColor="@android:color/white"
+            android:text="2"
+            android:visibility="gone" />
+    </FrameLayout>
+</RelativeLayout>
\ No newline at end of file
diff --git a/app/src/main/res/layout/stream_tile_new.xml b/app/src/main/res/layout/stream_tile_new.xml
index 7c1d5ffb1..e299e7dd8 100644
--- a/app/src/main/res/layout/stream_tile_new.xml
+++ b/app/src/main/res/layout/stream_tile_new.xml
@@ -13,8 +13,8 @@
         android:layout_marginLeft="16dp"
         android:background="@drawable/dot" />
 
-    <TextView
-        android:id="@+id/unread_group"
+    <FrameLayout
+        android:id="@+id/group_container"
         android:layout_width="wrap_content"
         android:layout_height="wrap_content"
         android:layout_alignParentEnd="true"
@@ -22,9 +22,17 @@
         android:layout_alignTop="@+id/stream_dot"
         android:layout_gravity="center_vertical|end"
         android:layout_marginEnd="30dp"
-        android:layout_marginRight="30dp"
-        android:text="1"
-        android:visibility="gone" />
+        android:layout_marginRight="30dp">
+        <TextView
+            android:id="@+id/unread_group"
+            android:layout_width="wrap_content"
+            android:layout_height="wrap_content"
+            android:background="@drawable/unread_counts_background"
+            android:gravity="center"
+            android:textColor="@android:color/white"
+            android:textAppearance="?android:attr/textAppearanceSmall"
+            android:visibility="visible" />
+    </FrameLayout>
 
     <TextView
         android:id="@+id/name"
diff --git a/app/src/main/res/menu/options.xml b/app/src/main/res/menu/options.xml
index 1fb54e804..e7825be9a 100644
--- a/app/src/main/res/menu/options.xml
+++ b/app/src/main/res/menu/options.xml
@@ -32,6 +32,11 @@
         android:id="@+id/daynight"
         android:title="@string/switch_theme" />
 
+    <item
+        android:id="@+id/bankruptcy"
+        android:title="@string/bankruptcy" />
+
+
     <item
         android:id="@+id/logout"
         android:title="@string/logout" />
diff --git a/app/src/main/res/values/dimens.xml b/app/src/main/res/values/dimens.xml
new file mode 100644
index 000000000..6acd04ebc
--- /dev/null
+++ b/app/src/main/res/values/dimens.xml
@@ -0,0 +1,7 @@
+<?xml version="1.0" encoding="utf-8"?>
+<resources>
+    <dimen name="small_bubble">18dp</dimen>
+    <dimen name="medium_bubble">22dp</dimen>
+    <dimen name="large_bubble">26dp</dimen>
+    <dimen name="extra_large_bubble">30dp</dimen>
+</resources>
\ No newline at end of file
diff --git a/app/src/main/res/values/strings.xml b/app/src/main/res/values/strings.xml
index 607007be5..9b8fda222 100644
--- a/app/src/main/res/values/strings.xml
+++ b/app/src/main/res/values/strings.xml
@@ -156,4 +156,8 @@
     <string name="copy_message_fetch">Copying message to clipboard</string>
     <string name="copy_failed">Copying to clipboard failed</string>
     <string name="try_again_error_msg">Something went wrong, try again</string>
+    <string name="bankruptcy">Declare bankruptcy</string>
+    <string name="bankruptcy_alert_message">Are you sure you want to skip all messages?</string>
+    <string name="bankruptcy_progress_dialog">Skipping messages</string>
+    <string name="bankruptcy_confirmation_msg">Marked all messages as read!</string>
 </resources>