I know that (older versions of) Cyanogenmod would set the TTL of packets to be (2^n + 1) for this exact reason, but it happened on the phone.
Also, FWIW, I have T-mobile and haven't experienced issues tethering on my stock Nexus 5. I'm curious why some customers are experiencing these and not others.
On my Nexus 4 it worked fine for a few months, but then they started blocking it (I used it lightly during my commute, probably <1gb monthly, I have the $30 5gb-fast/unlimited-slow plan). Give it time, it'll probably happen to you too.
I know that (older versions of) Cyanogenmod would set the TTL of packets to be (2^n + 1) for this exact reason, but it happened on the phone.
Also, FWIW, I have T-mobile and haven't experienced issues tethering on my stock Nexus 5. I'm curious why some customers are experiencing these and not others.