Yes, it is up.
The internet is a series of connections, much like one might envision plumbing. For you to connect to any given site, you might have to switch between several different connections, each owned by someone different. So to get to site X you might go...
ISP -> company A -> company C -> X
Another way to think of it is like UPS shipping. Your package starts in California, goes to Dallas Texas, then to Philly, and finally gets to you in NYC. But if Philly is snowed in, then your package sits and waits and doesn't get to you.
So what is happening to you right now, most likely, is that the path from you to Hyperspin is crossing the connection from either NTT to Savvis, or NTT to Sprint, the internethealthreport.com is reporting that both are having connection issues at the moment. So you are hitting that and then your request is dieing.
But when you connect to your proxy, you're not going through those trouble spots, and your proxy is taking a different route as well, so it connects. In a bit, an hour, maybe two, the trouble spots will get ironed out and you'll be back to no problems.