So an individual vm instance in any cloud provider is unreliable. Welcome to the cloud. Its foolish to assume otherwise, keep backups and restore to another instance or go HA. What's unreasonable is to assume they should publish a status update saying that one of their thousands of machines is having an issue. Fwiw, I've had the same 'hypervisor' problem' response from DO one time when i couldn't terminate a droplet.

Otoh when they have whole api outages for creating or destroying vms (like also happened last week) i'd expect and did find a status update. What their threshold is for reporting isn't clear.. but a 1 machine issue isn't something any provider would report on.