It will be important for the operation of future multi-terminal HVDC systems that each converter unit is capable of limiting the influence of nearby AC faults on the DC grid. Thus, the local control systems at each terminal should be able to prevent double frequency active power oscillations caused by unbalanced AC faults from propagating to the DC-side of the converter. A simple approach for achieving this objective, while ensuring that the converter currents are limited to safe values, is therefore presented in this paper. The proposed method is based on estimation of Positive and Negative Sequence Virtual Flux components at the terminals of the converter. Double frequency oscillations in the active power flow through the converter can therefore be eliminated during unbalanced conditions, without considering the influence of the filter inductors. By preventing power oscillations in the DC system, while keeping the currents within the available rating, the proposed control system will prevent converter tripping and unwanted interruption of system operation.