We are noticing the same thing here, with a 10x drop in tweets coming through since just after 20:10UTC on the 27th. Seems that tweets (ironically) aren’t being geocoded for identification in the search results. Only those tweets with explicit geotag (Place or lat/lon from GPS), or a explicit lat/lon in the user profile are coming through with a geo search.
So previously if someone had ‘Melbourne, Australia’ in their profile, they would come up in a geocoded search over Melbourne, but now they don’t, only if they have attached a geotag to tweets, or put an explicit lat lon in their profile (typically due to older clients who did it pre-geotag days).
You can see this in the public search results as well, eg:
https://twitter.com/search/realtime?q=near%3Amelbourne&src=typd
Most tweets have the little location icon, and those that don’t, you will find a lat/lon in the user profile.