Deleting the config file fixed it for me too. I couldn't imagine any beginner or even some novice users figuring this bug out because gui users will see a silent failure. 

I've never had any real problems with localbitcoins.com, if I can move the cash out of my account I know it's legit and can release btc, if not then I don't. So simple. Although I've had several scam attempts that caused my btc to be locked up for a few days, and some check return fees, but I'm okay with that. I want the buyer experience to be priority so we can get more btc adoption. More competition for localbitcoins would also be awesome, as long as the UX for buyers is good.