Looking at the grizzly source it was seen that "Content-Encoding" set to "deflate" or "gzip" are not equivalent. In particular, if the header contains "gzip" grizzly unconditionally skips the compression filter, but if it is "deflate" it does not.
I guess "gzip" is the defacto standard for http 1.1, but it appears to be a simple bug that "deflate" is also not recognized.
So switching to gzip is a work around, although if I had zillions of already deflated blobs this would not really be satisfactory.
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