Sony's official Playstation blog has confirmed that the Lost Planet demo was pulled from the Playstation Network in order to resolve issues which have arised. They are working overtime to resolve the issue and a new fixed version of the demo will hit the Playstation Network as soon as possible.

The multiplayer demo for Lost Planet: Extreme Condition is temporarily being removed from the PlayStation Network in order to address issues that have come to light. We will be working overtime to correct the issue and expect to upload a new version to the PlayStation Network as soon as possible that accurately reflects the incredible online features of the game. For those of you who have already downloaded the demo, the servers are being taken down until the new version is ready to go. We apologize for the inconvenience and thank you for your patience and your interest in Lost Planet!