I had the issue about 10 times today and it is pretty frustrating. I read about in in the lobby alot too. It seems like the server is not able to deal with that amount of players, which is just poor and anoying. The game just freezes for about a minute and then you find yourself back again in the lobby. If you have other ideas which would help to prevent that you get kicked out of matches, I would be really happy.
I know any have as well of myself since this influx of new players, have directly told him that he needs to update the servers to withhold all these people. Otherwise it'll resort in more players leaving because of that and not these other still obvious issues on the to-do list.
I've heard about this ever since I started playing however (either by luck or science) I have not had this happen to me yet. I know this sounds old fashioned, but I connect to the internet through the Ethernet, perhaps that may be why?
This mostly occured in 16 player tournaments, though it does happen in 8 and 4 player tournaments, too. However, you could never fully win a 16 player tournament because one match ALWAYS disconnected. Because kChamp never programmed a "free pass" (which he still should do), the tournament couldn't continue. After the new update, I've been in 3 16 player tournies and none of them disconnected. That doesn't mean there aren't connection issues... like me being in two games at once yesterday. That was NOT a fun experience. O_O