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Is server_name _; edited to hide your domains? If not, remember to set it to server_name www.site1.com; and server_name www.site2.com; respectively.
Check out this tutorial for more information on setting up Nginx server blocks:
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Hi everything is working fine. I forgot to update my post. The problem was that I messed up path in my project directory.
server_name_; was set by default when I created a droplet.