Hosts.deny auto blocking 127.0.0.1

Problem: 

I am getting the below erro when i tried to connect Remote Connection with my server in Nxserver Log.

Error: ssh_exchange_identification: Connection closed by remote host + nxserver

I stopped the denyhosts removed the entry from hosts.deny then restated denyhosts but “sshd: 127.0.0.1″ keeps getting added to hosts.deny

 

Solution:

Try checking the ufw, type in a shell:

     sudo ufw status

If you have any kind of rule here, then try:

   sudo ufw allow from 127.0.0.0/8

This will allow all to localhost