This issue relates to another bug that I own : JDK-8062305
It seems to be an area that causes alot of issue (for plugin mainly) and the suggestion from Chris in 7178362 bug report to return a direct connection type for bad ProxySelector implementations seems appropriate.
webrev : http://cr.openjdk.java.net/~coffeys/webrev.7178362/webrev/ bug report : https://bugs.openjdk.java.net/browse/JDK-7178362 regards, Sean.