To make a proxy repository act like a hosted repo and continue to serve already cached artifacts:
Nexus Repository 3
Select the proxy repository in the UI Repositories list. On the Settings tab, check the Block outbound connections on the repository checkbox and Save the settings.
Nexus Repository 2
For each repository, edit the Configuration tab. Change Automatically Block to False, and then save.
Immediately right-click the repository in the repositories list and choose Block proxy. This manually blocks outbound connections from the proxy and now Nexus Repository 2 will no longer keep trying to unblock these invalid repositories.