The reports seem to be true, and Twitter is now buzzing about the shut down. It appears all internet service was shutdown sometime yesterday.
Apparently, this outage is far more complete than the temporary outage on February 18, with traffic falling off almost completely.
Twitterers are furious, and are taking the internet outage in a few different ways. While some consider this a sign of downturn in the efforts to liberate the country, others are using it to reinforce the call for Gadhafi's resignation.
A collection of Twitter reactions are displayed below.