This happened tonight, shortly after Facebook took the same decision. Even Bit.ly itself is banned, see picture below. This happens only with Chrome, but not with other browsers such as IE or Firefox. The ban will probably be lifted in several hours.
This brings interesting questions:
For your curiosity, you can check http://safebrowsing.clients.google.com/safebrowsing/diagnostic?site... to verify if a website is safe or not, according to Google (replace bit.ly with any domain you want to check). And maybe what Google is trying to do with the bit.ly ban, is to get people to visit their safebrowsing website security app.
Maybe this is more a "business politics" issue or the result of competitive wars, rather than a data science / true security issue. After all, everyone knows that our bit.ly redirects are safe, as we use bit.ly only for internal redirects. Unless of course, if bit.ly has been so badly attacked by hackers, that many of their redirects have been re-redirected. But I know that's not the case.