Problem solved. MySQL's MyISAM storage engine doesn't support transactions at all.
I used Hibernate to automatically generate my schema, so it used MyISAM since it is the
default.
I Added the following line in my.ini file inside MySQL installation to set the default to
be InnoDB, and it solved it.
default-storage-engine=innodb
Hibernate automatic schema generation started creating tables using InnoDB, and atomic
transactions now work.
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