EDIT: Well... I thought it was fixed. Here's Equinox's post. Or if you're lazy, the response:
It's actually not fixed yet, I think possibly there's one server or something that works okay or sporadically does so (it's been like that for a while). I'll let you know whenever it's fixed fixed for everyone. Carry on.
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Just thought I'd let everyone know that the image uploading problem has FINALLY BEEN FIXED