diff --git a/lib/ansible/modules/cloud/amazon/ec2.py b/lib/ansible/modules/cloud/amazon/ec2.py
index c8649f3d3d9..eb56684b044 100755
--- a/lib/ansible/modules/cloud/amazon/ec2.py
+++ b/lib/ansible/modules/cloud/amazon/ec2.py
@@ -793,6 +793,63 @@ def boto_supports_param_in_spot_request(ec2, param):
     method = getattr(ec2, 'request_spot_instances')
     return param in method.func_code.co_varnames
 
+def await_spot_requests(module, ec2, spot_requests, count):
+    """
+    Wait for a group of spot requests to be fulfilled, or fail.
+
+    module: Ansible module object
+    ec2: authenticated ec2 connection object
+    spot_requests: boto.ec2.spotinstancerequest.SpotInstanceRequest object returned by ec2.request_spot_instances
+    count: Total number of instances to be created by the spot requests
+
+    Returns:
+        list of instance ID's created by the spot request(s)
+    """
+    spot_wait_timeout = int(module.params.get('spot_wait_timeout'))
+    wait_complete = time.time() + spot_wait_timeout
+
+    spot_req_inst_ids = dict()
+    while time.time() < wait_complete:
+        reqs = ec2.get_all_spot_instance_requests()
+        for sirb in spot_requests:
+            if sirb.id in spot_req_inst_ids:
+                continue
+            for sir in reqs:
+                if sir.id != sirb.id:
+                    continue # this is not our spot instance
+                if sir.instance_id is not None:
+                    spot_req_inst_ids[sirb.id] = sir.instance_id
+                elif sir.state == 'open':
+                    continue # still waiting, nothing to do here
+                elif sir.state == 'active':
+                    continue # Instance is created already, nothing to do here
+                elif sir.state == 'failed':
+                    module.fail_json(msg="Spot instance request %s failed with status %s and fault %s:%s" % (
+                        sir.id, sir.status.code, sir.fault.code, sir.fault.message))
+                elif sir.state == 'cancelled':
+                    module.fail_json(msg="Spot instance request %s was cancelled before it could be fulfilled." % sir.id)
+                elif sir.state == 'closed':
+                    # instance is terminating or marked for termination
+                    # this may be intentional on the part of the operator,
+                    # or it may have been terminated by AWS due to capacity,
+                    # price, or group constraints in this case, we'll fail
+                    # the module if the reason for the state is anything
+                    # other than termination by user. Codes are documented at
+                    # http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/spot-bid-status.html
+                    if sir.status.code == 'instance-terminated-by-user':
+                        # do nothing, since the user likely did this on purpose
+                        pass
+                    else:
+                        spot_msg = "Spot instance request %s was closed by AWS with the status %s and fault %s:%s"
+                        module.fail_json(msg=spot_msg % (sir.id, sir.status.code, sir.fault.code, sir.fault.message))
+
+        if len(spot_req_inst_ids) < count:
+            time.sleep(5)
+        else:
+            return spot_req_inst_ids.values()
+    module.fail_json(msg = "wait for spot requests timeout on %s" % time.asctime())
+
+
 def enforce_count(module, ec2, vpc):
 
     exact_count = module.params.get('exact_count')
@@ -1103,23 +1160,7 @@ def create_instances(module, ec2, vpc, override_count=None):
 
                 # Now we have to do the intermediate waiting
                 if wait:
-                    spot_req_inst_ids = dict()
-                    spot_wait_timeout = time.time() + spot_wait_timeout
-                    while spot_wait_timeout > time.time():
-                        reqs = ec2.get_all_spot_instance_requests()
-                        for sirb in res:
-                            if sirb.id in spot_req_inst_ids:
-                                continue
-                            for sir in reqs:
-                                if sir.id == sirb.id and sir.instance_id is not None:
-                                    spot_req_inst_ids[sirb.id] = sir.instance_id
-                        if len(spot_req_inst_ids) < count:
-                            time.sleep(5)
-                        else:
-                            break
-                    if spot_wait_timeout <= time.time():
-                        module.fail_json(msg = "wait for spot requests timeout on %s" % time.asctime())
-                    instids = spot_req_inst_ids.values()
+                    instids = await_spot_requests(module, ec2, res, count)
         except boto.exception.BotoServerError as e:
             module.fail_json(msg = "Instance creation failed => %s: %s" % (e.error_code, e.error_message))