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Comment by mrud | Hacker News Reader

You can also use ssh -W [1] instead of relying on nc, i.e:

   Host madeup
       Host internal_name
       ProxyCommand ssh external.example.net -W %h:22

Note there appears to be a bug where the use of ControlPersist breaks the use of '-W'. You end up with 'bad packet'.

openssh-6.0 release notes has this:

   * sshd(8): unbreak stdio forwarding when ControlPersist is in use; bz#1943

I haven't tested to see if that resolves the issue yet though (on osx which of course does not have 6.0).

However, the netcat version works fine.