Memcached load balancing

[J A]

How exactly does Memcache do load balancing? Suppose I have 3 Memcached
servers, and I start storing items in server CACHE1.  Later somehow CACHE1
crashes, and all info there is gone.  What happens then? Would I have to
code in my logic to start moving all future caches to CACHE2?

Also, what if CACHE1 gets full? How would my PHP application know to move to
CACHE2 for further caches?
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