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Ok, I don't know if I am the only one sailing in this boat or not but my experience with personal hotspot hasn't been good.
I have MBA(Early 2014) with latest public build of Yosemite installed and I have iPhone 5 running 8.1.2. My Mac does connects to iPhone's hotspot really well BUT when I just close the lid of Mac or put it to sleep and bring it back to life, it won't just connect to hotspot. Eventually, I have to give a restart to my Mac to make it work again.
The error message which I get when I try to connect to iPhone's hotspot(post sleep session) is "Try to bring your iPhone closer to your Mac's proximity" and obviously, it is!