there is bug in latest update to openjdk.
Logging & JDK guys are investigating the issue, but short solution would be to downgrade openjdk to previous update, or use oracle's jdk.
I can confirm that downgrading java to the previous version with:
yum downgrade java-1.7.0-openjdk java-1.7.0-openjdk-devel
On Fedora 17 will solve the issue.
Thank you very much for the quick answer! Setting JAVA_HOME to oracle's JDK solves the problem.
If someone else is going through this I've found this link to install hotspot jdk in fc17.