According to one embodiment, a method for handling congestion in a network includes determining that there is congestion on a first device in a network, setting a congestion indicator in a header of a packet to indicate an amount of congestion at the first device, sending the packet to all devices that send traffic to the first device, receiving the packet having the multi-bit indicator in a header thereof at a device that sends traffic to the first device, and reducing a congestion window by a factor of between about 5% and about 50% based on a severity of the congestion indicated by the multi-bit indicator, wherein the congestion window is reduced by a greater factor when the congestion is indicated as being more severe. Other systems and methods for handling congestion in a network are described according to more embodiments.