There is a known bug with masquerading and path mtu discovery in 2.2. Icmp
forgets to unmasquerade an already masqueraded packet, so the ICMP payload
header contains the wrong address and the other end drops it.
For NAT it is handled in icmp.c, but not for Masquerading
currently. Fix is a bit more complex though because unlike NAT the
masquerading rule is not easily accessable from the skb.
-Andi
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