This appears to be a duplicate of Bug #878986 and a problem with pulse audio.
using pactl instead is a solution that worked for me.
As documented here.
http://askubuntu.com/questions/118675/mute-key-mutes-alsa-and-pulseaudio-but-unmutes-only-alsa

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https://bugs.launchpad.net/bugs/1026331

Title:
  `amixer set Master toggle` mutes but doesn't unmute

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