Panic Simplifier ticks exhausted with type families

I've tried to compile my vinyl-like records with 7.10.2-rc1 and got:

ghc: panic! (the 'impossible' happened)
  (GHC version 7.10.1.20150612 for x86_64-unknown-linux):
        Simplifier ticks exhausted
  When trying RuleFired Class op rreplace
  To increase the limit, use -fsimpl-tick-factor=N (default 100)
  If you need to do this, let GHC HQ know, and what factor you needed
  To see detailed counts use -ddump-simpl-stats
  Total ticks: 225484

Please report this as a GHC bug:  http://www.haskell.org/ghc/reportabug

Attached self contained test compiles with 7.10.1, but fails with 7.10.2-rc1 when compiled with optimizations.

Trac metadata

Trac field	Value
Version	7.10.1-rc1
Type	Bug
TypeOfFailure	OtherFailure
Priority	normal
Resolution	Unresolved
Component	Compiler
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