TF400324: The underlying connection was closed: The message length limit was exceeded

I encountered this issue after trying to get the latest version from visual studio (2012 update 2).

I tried to reconnect and even restart visual studio, but it didn't help.

TF400324: Team Foundation services are not available from server my-project.visualstudio.com. Technical information (for administrator): The underlying connection was closed: The message length limit was exceeded.

Any ideas?