Errors are occurring when a user tries to delete a workflow state by dragging it into the recycle bin.
If a new workflow state is dragged into the rubbish bin in the 'edit workflow' screen an unexpected error occurs.
If the user presses back to the workflow screen, edits any part of the workflow and saves it, everything but the part of the workflow the user edited will have been deleted.
When deleting a workflow state, go into the state and delete it in the state itself instead of dragging it into the rubbish bin.
Reproducable in 7.2c, 7.1k. This is currently with development, and will be fixed in a future version of CRM.
This has been fixed in the 2014R1.2 patch of Cloud installs.