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Yahoo Messenger App showing all contacts offline

I have a nexus s which has been running yahoo messenger fine. a week I noticed that all my contacts show offline. I appear online to my contacts but when they try to reach I don't get any of their IMs. If I IM the someone who appears offline but is online they actually get my message.

I thought this was a software conflict so I recovered the phone to factory settings using the bootloader. Installed only the yahoo app and still nothing.

The only other thing I could think of that could have cause something is the 2.3.2 update, but I can't be sure as I can't roll back to it.

Any ideas or help will be very appreciated as I like yahoo messenger since it didn't drain my battery like other apps do.
 

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