Hello, We are facing same issue.. It has happened when hibernate evict the collections from the cache. We are using hibernate 3.3.2.GA.
I have tried " hibernate 3.6.10 final " but I the error still happening. Do know in what hibernate version this issue is fixed ???? Please help this become a production problem and it keeps taking our service down every single day .

ERROR 2014-04-24 15:32:03,551 org.hibernate.engine.ActionQueue pool-2-thread-29 - could not release a cache lock
org.hibernate.cache.CacheException: net.sf.ehcache.CacheException: Underlying Terracotta connection closed! Can't act on clustered lock anymore...
at net.sf.ehcache.hibernate.regions.EhcacheTransactionalDataRegion.writeLock(EhcacheTransactionalDataRegion.java:204)
at net.sf.ehcache.hibernate.strategy.AbstractReadWriteEhcacheAccessStrategy.unlockItem(AbstractReadWriteEhcacheAccessStrategy.java:129)
at net.sf.ehcache.hibernate.nonstop.NonstopAwareEntityRegionAccessStrategy.unlockItem(NonstopAwareEntityRegionAccessStrategy.java:234)
at org.hibernate.action.EntityDeleteAction.doAfterTransactionCompletion(EntityDeleteAction.java:180)
at org.hibernate.engine.ActionQueue$AfterTransactionCompletionProcessQueue.afterTransactionCompletion(ActionQueue.java:602)
at org.hibernate.engine.ActionQueue.afterTransactionCompletion(ActionQueue.java:209)
at org.hibernate.impl.SessionImpl.afterTransactionCompletion(SessionImpl.java:602)
at org.hibernate.jdbc.JDBCContext.afterTransactionCompletion(JDBCContext.java:273)
at org.hibernate.jdbc.JDBCContext.connectionCleanedUp(JDBCContext.java:138)
at org.hibernate.jdbc.ConnectionManager.cleanup(ConnectionManager.java:417)
at org.hibernate.jdbc.ConnectionManager.close(ConnectionManager.java:347)
at org.hibernate.impl.SessionImpl.close(SessionImpl.java:343)
at org.springframework.orm.hibernate3.SessionFactoryUtils.closeSession(SessionFactoryUtils.java:776)
at org.springframework.orm.hibernate3.SessionFactoryUtils.closeSessionOrRegisterDeferredClose(SessionFactoryUtils.java:762)
at org.springframework.orm.hibernate3.HibernateTemplate.doExecute(HibernateTemplate.java:447)
at org.springframework.orm.hibernate3.HibernateTemplate.executeWithNativeSession(HibernateTemplate.java:374)
at org.springframework.orm.hibernate3.HibernateTemplate.delete(HibernateTemplate.java:842)
at org.springframework.orm.hibernate3.HibernateTemplate.delete(HibernateTemplate.java:838)
at com.sensorlogic.dao.DefaultDAO.delete(DefaultDAO.java:168)
at com.sensorlogic.device.dao.DeviceDAO.deleteMemeber(DeviceDAO.java:431)
at com.sensorlogic.device.dao.DeviceDAO.deleteMemeber(DeviceDAO.java:44)
at com.sensorlogic.device.dao.DeviceDAO$$FastClassByCGLIB$$33d402df.invoke(<generated>)
at net.sf.cglib.proxy.MethodProxy.invoke(MethodProxy.java:191)
at org.springframework.aop.framework.Cglib2AopProxy$DynamicAdvisedInterceptor.intercept(Cglib2AopProxy.java:628)
at com.sensorlogic.device.dao.DeviceDAO$$EnhancerByCGLIB$$e3ca3f6c.deleteMemeber(<generated>)
at com.sensorlogic.group.servlet.AbstractMemberServlet.delete(AbstractMemberServlet.java:1050)
at com.sensorlogic.group.servlet.AbstractMemberServlet.doGet(AbstractMemberServlet.java:113)
at javax.servlet.http.HttpServlet.service(HttpServlet.java:707)
at javax.servlet.http.HttpServlet.service(HttpServlet.java:820)
at org.eclipse.jetty.servlet.ServletHolder.handle(ServletHolder.java:530)
at org.eclipse.jetty.servlet.ServletHandler.doHandle(ServletHandler.java:427)
at org.eclipse.jetty.server.handler.ContextHandler.doHandle(ContextHandler.java:931)
at org.eclipse.jetty.servlet.ServletHandler.doScope(ServletHandler.java:362)
at org.eclipse.jetty.server.handler.ContextHandler.doScope(ContextHandler.java:867)
at org.eclipse.jetty.server.handler.ScopedHandler.handle(ScopedHandler.java:117)
at org.eclipse.jetty.server.handler.HandlerWrapper.handle(HandlerWrapper.java:113)
at org.eclipse.jetty.server.Server.handle(Server.java:334)
at org.eclipse.jetty.server.HttpConnection.handleRequest(HttpConnection.java:559)
at org.eclipse.jetty.server.HttpConnection$RequestHandler.headerComplete(HttpConnection.java:992)
at org.eclipse.jetty.http.HttpParser.parseNext(HttpParser.java:541)
at org.eclipse.jetty.http.HttpParser.parseAvailable(HttpParser.java:203)
at org.eclipse.jetty.server.HttpConnection.handle(HttpConnection.java:406)
at org.eclipse.jetty.io.nio.SelectChannelEndPoint.run(SelectChannelEndPoint.java:462)
at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:886)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:908)
at java.lang.Thread.run(Thread.java:662)
Caused by: net.sf.ehcache.CacheException: Underlying Terracotta connection closed! Can't act on clustered lock anymore...
at org.terracotta.modules.ehcache.concurrency.TcSync.hideTCNotRunningException(TcSync.java:112)
at org.terracotta.modules.ehcache.concurrency.TcSync.lock(TcSync.java:38)
at net.sf.ehcache.hibernate.regions.EhcacheTransactionalDataRegion.writeLock(EhcacheTransactionalDataRegion.java:199)
... 45 more
Caused by: com.tc.exception.TCNotRunningException: Terracotta is not running.
at com.tc.object.locks.ClientLockManagerImpl.waitUntilRunning(ClientLockManagerImpl.java:635)
at com.tc.object.locks.ClientLockManagerImpl.lock(ClientLockManagerImpl.java:93)
at com.tc.object.bytecode.ManagerImpl.lock(ManagerImpl.java:870)
at org.terracotta.locking.TerracottaLock.lock(TerracottaLock.java:89)
at org.terracotta.modules.ehcache.concurrency.TcSync.lock(TcSync.java:32)
... 46 more