In order the hotspot to work, all the device must be linked to the same icloud account (you can check this in your icloud account and look for all the devices attached to your account). All this configuration, is pass to the devices back and keep there. Part of that configuration allows one device recognize the others via bluetooth, if the device that want to get access to the hotspot is recognize as "trust" device the hotspot is display otherwise, the hotspot "could" no (necessary it will ) display as another regular wifi signal available where in that case in order to access you will need to provide the password for the hotspot.
Hence, what happen when you upgraded to ios 8.1, the name of the device changed (at least that happen to me) from my previous name to "iPhone", at this point you device is not recognize for your hotspot.
Fred