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Installing hardening I managed to get system to state where most of the processes were failing to run correctly. Router was clearly running but processes such as lighttpd or dnsmasq were taking together full system load and router was accessible only trough console. It is possible that processes as SSH were affected by that as well and something prevented them to run correctly. I had to do forced reboot (/proc/sysrq-trigger). After that reboot issue was gone.

I suspect that problem is with initial installation of hardening components to running system and application of them on first boot.