Amazon's new EBS-based EC2 instances have two options to shutdown: terminate or stop. Stopped instances can be later started again, automatically continuing from the same EBS root disk state they had when they were stopped.
But what happens when an Amazon datacenter has a hardware failure, and the EC2 instance is forced to shutdown. Does it terminate or stop? If the instance has been configured to stop by default on shutdown, can I rely on it being stopped also in this situation, and being able to start it again later?
I assume you mean the CPU related hardware fails, rather than the network disk. The way I treat EC2 is to create a system that can go up and down without data loss. Anything important you should use an S3 bucket, not EBS.