diff --git a/docs/content/reference/settings.md b/docs/content/reference/settings.md
index 76b58d5b..ea9333af 100644
--- a/docs/content/reference/settings.md
+++ b/docs/content/reference/settings.md
@@ -73,6 +73,11 @@ because it consumes less system resources.
     In order to use the inotify reloader, you must have the ``inotify``
     package installed.
 
+!!! warning
+    Enabling this will change what happens on failure to load the
+    the application: While the reloader is active, any and all clients
+    that can make requests can see the full exception and traceback!
+
 ### `reload_engine`
 
 **Command line:** `--reload-engine STRING`
diff --git a/gunicorn/config.py b/gunicorn/config.py
index ffbc1b27..1e0565f2 100644
--- a/gunicorn/config.py
+++ b/gunicorn/config.py
@@ -952,6 +952,10 @@ class Reload(Setting):
         .. note::
            In order to use the inotify reloader, you must have the ``inotify``
            package installed.
+        .. warning::
+           Enabling this will change what happens on failure to load the
+           the application: While the reloader is active, any and all clients
+           that can make requests can see the full exception and traceback!
         '''
 
 
diff --git a/gunicorn/workers/base.py b/gunicorn/workers/base.py
index c7a46e0e..ca6cf10b 100644
--- a/gunicorn/workers/base.py
+++ b/gunicorn/workers/base.py
@@ -128,6 +128,7 @@ class Worker:
                 time.sleep(0.1)
                 sys.exit(0)
 
+            self.log.warning("Reloader is on. Use in development only!")
             reloader_cls = reloader_engines[self.cfg.reload_engine]
             self.reloader = reloader_cls(extra_files=self.cfg.reload_extra_files,
                                          callback=changed)
@@ -151,19 +152,12 @@ class Worker:
 
             self.log.exception(e)
 
-            # fix from PR #1228
-            # storing the traceback into exc_tb will create a circular reference.
-            # per https://docs.python.org/2/library/sys.html#sys.exc_info warning,
-            # delete the traceback after use.
-            try:
-                _, exc_val, exc_tb = sys.exc_info()
-                self.reloader.add_extra_file(exc_val.filename)
+            if self.reloader is not None and e.filename is not None:
+                self.reloader.add_extra_file(e.filename)
 
-                tb_string = io.StringIO()
-                traceback.print_tb(exc_tb, file=tb_string)
+            with io.StringIO() as tb_string:
+                traceback.print_exception(e, file=tb_string)
                 self.wsgi = util.make_fail_app(tb_string.getvalue())
-            finally:
-                del exc_tb
 
     def init_signals(self):
         # reset signaling