This work presents the development of an algorithm for fault detection and clearance in H-bridge inverter cells, specifically within cascaded multilevel converters operating as grid-forming inverters. The algorithm utilizes the Second-Order Generalized Integrator (SOGI) strategy, which is applied to a single converter phase. The study focuses on optimizing the performance of these inverters, which play a crucial role in integrating renewable energy sources like solar and wind power into the electrical grid. The proposed algorithm enables rapid fault identification in the inverter cells, ensuring continuous power supply and maintaining microgrid stability. The analysis covers the operating conditions under both open and short circuit scenarios, examining voltage and current behaviors during fault conditions. The results demonstrate that implementing the algorithm safeguards system components and enhances inverter reliability, allowing it to operate effectively under adverse conditions. This work contributes to advancing renewable energy technologies and intelligent grid management by offering an innovative solution to challenges in distributed energy systems.