Strange Bundler error, noexec.rb:5:in `pwd'

I got the following after running "bundle install" :

rubygems-bundler-1.4.2/lib/rubygems-bundler/noexec.rb:5:in `pwd': No such file or directory - getcwd (Errno::ENOENT)

Thanks to stackoverflow and this blog I cd'd into the parent directory and then back into my working directory and bundler worked.