It has to be that. Can't think of another reason why you need to mass reboot the servers the instances are running on and serious enough they are patching through the weekend. Wonder if its being exploited in the wild. Also none of our C3.2Xlarges are getting rebooted, those use SR-IOV which can virtualize PCIE devices at the hardware level so it probably a network boundary exploit allow you to pull other instance traffic.
If you look at the public release column you'll see the following date: 2014-10-01 12:00. I'm not sure when the vulnerability was added to the list or what timezone that is referring to but it looks like we'll find out what it is in a couple days.