This is indeed a new bug in OnDemand affecting IE8 users: https://jira.atlassian.com/browse/JRA-29863
We'll likely have a fix out for this by Monday. In the meantime, using a different browser (e.g. IE 9+, Firefox, Chrome, Safari) can avoid this problem.
We have had few users who faced this issue after Monday's update, so we are still investigating a proper fix for this.
As this only effects IE8, could you try to clear the cache of IE8 from cookies and Java Scripts files? You can also try to navigate to "Tools > advanced > disable/enable debugging".
If non of the above helps please raise a support case at https://support.atlassian.com.
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