Seems to be related to this issue

http://open.eucalyptus.com/forum/network-problem-managed-novlan

I was running with a similar setup as the one described in the forum
post. Setting the subnet mask to "255.255.0.0" helped.

You might want to warn in the log if the setup is configured as posted
on the forum.

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Instance losses associated address
https://bugs.launchpad.net/bugs/585784
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