Tried using the fixed launcher(direct link to dl) for Steam? It might help you temporarily until this is resolved.(Might also have to use squid's tool)
EDIT: Also, have you guys tried changing download servers? There's times when I download updates and they don't even start -- usually for big games that are played regularly by a lot of people. (Maybe it tells us something!) I sometimes change my server from Seattle/around there to some far away place like London or even Moscow. Lol, weird but tends to work for me.





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