The problem is, there's not enough memory available. During the update process the box runs out of memory.
You can do a update in a telnet console with some additional settings:
/media/usb is used as temporary storage device for downloading the updates and recommended packages are NOT installed.
You need to install a enigma-locale file (language) after the update otherwise the box also doesn't boot (missing /usr/share/enigma2/po directory).
This works. I just updated my box, installed with a fresh 20140824 image.