Hi guys!

I have a problem i've been struggling with for a couple of days. I tried to figure that out by myself but the better way is to ask a native speaker :D So, my dear native speakers of English, could you tell me which sentence below is correct? :)

1) Everyone at the company was walking on eggshells until we heard that no one would be fired. - this one I found on the internet

2) Everyone at the company had been walking on eggshells until we heard that no one would be fired. - but this one seems to be more logical to me. Before hearing that no one would be fired we had been walking on eggshells, right? I mean we had been doing something before something happened.

Aghr, i don't know...

Could you help me by any chance and maybe expain why is the one chosen by you correct?

Thanks in advance!