Amazon's S3 storage system was down for 8 hours due to a few bad  
pieces of gossip (flipped bits resulting in well formed but untrue  
pieces of information) passed between their servers.  This bad  
information resulted in a catastrophic cascade of gossip that lead to  
a complete shut down of the operation for the US and EU...

Here is their write-up on what happened:
http://status.aws.amazon.com/s3-20080720.html



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