read: Connection reset by peer using sshfs to connect to AWS

I am trying to use sshfs to mount a directory on an AWS instance from Ubuntu 16.04.

The command I am using:

sshfs -o IdentityFile=keyfile.pem [email protected]:/var/www sshfs/

Result (with -o sshfs_debug)

SSHFS version 2.5
read: Connection reset by peer

/var/log/secure entry on AWS instance after attempting to connect:

May 10 00:00:33 ip-X-X-X-X sshd[19114]: Connection closed by X.X.X.X [preauth]

I tested with a different VPS I run personally and I am able to use sshfs fine, and I have no issues using ssh regularly into this server.

The instance was created using amzn-ami-hvm-2015.09.0.x86_64-gp2 (ami-cd3aff89)