All BFD tunnels with the Edge nodes are down, however ESXi tunnels may remain unaffected.
The Edge nodes are in a Collapsed Cluster (all Edge and Manager nodes are deployed on hosts prepared for NSX).
The Edge nodes are using an Uplink Profile on the TEP interface configured for a VLAN tag that is also configured on the segment used by the node's TEP interface.
VMware NSX 4.X
A misconfiguration between the Edge's TEP interface and the segment it utilizes leads to the virtual switch to drop all traffic to/from the TEP interface.
This loss of all packets, including ARP, before it enters the physical network in turn causes all Layer-2 connectivity to fail.
Change the segment used by the Edge TEP interfaces to be trunked for all VLANs to allow for traffic that is already tagged to be passed normally.
NOTE: The tunnel status may take a few minutes to re-establish connectivity, but the status can be monitored in System -> Fabric -> Nodes and clicking "Refresh" on the bottom-right of the screen.
This configuration is essentially Virtual Guest Tagging, which is described in the following KB: VLAN configuration on virtual switches, physical switches, and virtual machines
See also Troubleshooting NSX TEP/BFD Tunnels between ESXi hosts and Edges for further information and possible issues.