Glance creates image with zero size if location is wrong

So the case in the issue is divided into 2 parts:
1) When we uploaded an image from location the image created successfully (although it is not in real life)
2) When we uploaded an image with copy-from the image was not uploaded successfully and was not created. Because of glance implementation we didn't show an error here to user.
I am proceeding analysis of this bug and will get back with more detailed results.

Ok, i could not reproduce the step where we created the image with:
glance image-create --name LINUX-64-2 --is-public True --disk-format iso --container-format bare --progress --copy-from http://<fuel_ip>:~/ubuntu-14.04.2-server-amd64.iso
The glance is responding with image status=queued and kills the image after that(because it can't request an image from url).
The glance logs shows the reason why the image killed:
2015-08-17 13:19:04.548 8969 ERROR glance.api.v1.images [req-c5ed90a5-c4c1-48e8-b4b2-8e21fc5ea9f0 85429ef7376840ceb4edfcafee859ed2 2fffbc217d5444c2aa9a89bc0749854c - - -] Copy from external source 'swift' failed for image: e42b73c1-3bce-44e1-baaa-c98c668f8c74
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images Traceback (most recent call last):
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/dist-packages/glance/api/v1/images.py", line 617, in _upload
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images dest=store)
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/dist-packages/glance/api/v1/images.py", line 469, in _get_from_store
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images image_data, image_size = src_store.get(loc, context=context)
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/dist-packages/glance_store/capabilities.py", line 226, in op_checker
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images return store_op_fun(store, *args, **kwargs)
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/dist-packages/glance_store/_drivers/http.py", line 129, in get
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images conn, resp, content_length = self._query(location, 'GET')
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/dist-packages/glance_store/_drivers/http.py", line 180, in _query
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images conn = conn_class(loc.netloc)
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/httplib.py", line 710, in __init__
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images self._set_hostport(host, port)
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images File "/usr/lib/python2.7/httplib.py", line 738, in _set_hostport
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images raise InvalidURL("nonnumeric port: '%s'" % host[i+1:])
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images InvalidURL: nonnumeric port: '~'
2015-08-17 13:19:04.548 8969 TRACE glance.api.v1.images
Kyrylo, could you please provide more details about this case?

I am proceeding with analysis of the following:
glance image-create --name LINUX-64 --is-public True --disk-format iso --container-format bare --progress --location http://<fuel_ip>:~/ubuntu-14.04.2-server-amd64.iso

Following comments from Kairat I'm re-assigning this ticket to Kirill and moving it to Incomplete.

Ruslan, here are 2 cases that Kyrylo wrote, the following case cause an issue in glance:
glance image-create --name LINUX-64 --is-public True --disk-format iso --container-format bare --progress --location http://<fuel_ip>:~/ubuntu-14.04.2-server-amd64.iso
So I will update the issue description to contain only one case.
Kyrylo, if you will manage to reproduce the case where the following image
glance image-create --name LINUX-64 --is-public True --disk-format iso --container-format bare --progress --location http://<fuel_ip>:~/ubuntu-14.04.2-server-amd64.iso
leads to active image then please create a separate issue for it.

Here is the fix for upstream: https://review.openstack.org/#/c/213925/.
Hope we will merge it soon.

Nominated for 8.0 and Won't Fix for 7.0-updates because of Medium importance

Just FYI. The fix has been merged recently and proposed to stable/liberty
https://review.openstack.org/#/c/229321/.

It was merged in latest liberty upstream sync.

verified on:

    VERSION:
      api: '1.0'
      astute_sha: 959b06c5ef8143125efd1727d350c050a922eb12
      build_id: '168'
      build_number: '168'
      feature_groups:
      - mirantis
      fuel-agent_sha: 2750600e946e96701099dfef5a7d69017f2e9956
      fuel-createmirror_sha: e34a0dd080fe6c133bcc75a00c31b27934ba51bc
      fuel-library_sha: 0d210dc3851ac6c74b3914ef4df0139defc8d117
      fuel-nailgun-agent_sha: 3e9d17211d65c80bf97c8d83979979f6c7feb687
      fuel-nailgun_sha: a5f4c44d08715f3be6b200a69032b30d347ac911
      fuel-ostf_sha: 9690a2de829d3b063ed1e64b0b10dde39f711dc0
      fuel-upgrade_sha: 1e894e26d4e1423a9b0d66abd6a79505f4175ff6
      fuelmain_sha: 266f9b374934c64629a84b5146632cc0de70ac91
      fuelmenu_sha: 06bbcebed6c8d0b0f9279e2997d2f958c800e98c
      network-checker_sha: a57e1d69acb5e765eb22cab0251c589cd76f51da
      openstack_version: 2015.1.0-8.0
      production: docker
      python-fuelclient_sha: e685d68c1c0d0fa0491a250f07d9c3a8d0f9608c
      release: '8.0'
      shotgun_sha: 25dd78a3118267e3616df0727ce746e7dead2d67