We observed an elevated rate of errors, creating local storage virtual machines (L1.* flavor).
Engineers are now looking into the problem and we will keep you informed here.
UPDATE 15:45: Creating L1.* virtual machines currently requires unusual amounts of disk space on the hypervisors. The elevated error rate was because not enough space was left, for short amounts of time. Our engineers have resolved this issue for now, and are still working on a permanent solution.
Please contact us at email@example.com if you are still encountering any issues.