Java applet not loading on Java8/HTTPS

I hava Java applet which will not run when using HTTPS. All works fine when testing on localhost. Also everything is working using a test server using only HTTP. In production mode where server is using only HTTPS this issue raises.
The one thing that caught my attention was this: "http://www.example.com:443/ with proxy=DIRECT" Why is the connection attempted to establish to http instead of https? http + port 443 seems not quite right there... Anyone has idea how can I perhaps modify that?
Would be pleased if anyone could point me to right direction with my problem.
Console output:
Java Plug-in 11.25.2.18
Using JRE version 1.8.0_25-b18 Java HotSpot(TM) Client VM
User home directory = D:\Users\example
----------------------------------------------------
c:   clear console window
f:   finalize objects on finalization queue
g:   garbage collect
h:   display this help message
l:   dump classloader list
m:   print memory usage
o:   trigger logging
q:   hide console
r:   reload policy configuration
s:   dump system and deployment properties
t:   dump thread list
v:   dump thread stack
x:   clear classloader cache
0-5: set trace level to <n>
----------------------------------------------------
basic: Added progress listener: sun.plugin.util.ProgressMonitorAdapter@1fbe203
security: Expected Main URL: https://www.example.com/example/applet/example-uploadapplet.jar
basic: Plugin2ClassLoader.addURL parent called for https://www.example.com/example/applet/example-uploadapplet.jar
basic: Plugin2ClassLoader.addURL parent called for https://www.example.com/example/applet/edtftpj-2.1.0.jar
network: Connecting https://www.example.com/example/applet/example-uploadapplet.jar with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
javax.net.ssl.SSLException: Received fatal alert: protocol_version
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.recvAlert(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.readRecord(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.performInitialHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.net.www.protocol.https.HttpsClient.afterConnect(Unknown Source)
    at sun.net.www.protocol.https.AbstractDelegateHttpsURLConnection.connect(Unknown Source)
    at sun.net.www.protocol.https.HttpsURLConnectionImpl.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.getJarFile(Unknown Source)
    at sun.net.www.protocol.jar.JarFileFactory.get(Unknown Source)
    at sun.net.www.protocol.jar.JarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFileInternal(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.access$800(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader$1.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.ensureOpen(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.<init>(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$3.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getResource(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at sun.plugin2.applet.Plugin2ClassLoader.findClassHelper(Unknown Source)
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
network: Connecting https://www.example.com/example/applet/edtftpj-2.1.0.jar with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
javax.net.ssl.SSLException: Received fatal alert: protocol_version
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.recvAlert(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.readRecord(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.performInitialHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.net.www.protocol.https.HttpsClient.afterConnect(Unknown Source)
    at sun.net.www.protocol.https.AbstractDelegateHttpsURLConnection.connect(Unknown Source)
    at sun.net.www.protocol.https.HttpsURLConnectionImpl.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.getJarFile(Unknown Source)
    at sun.net.www.protocol.jar.JarFileFactory.get(Unknown Source)
    at sun.net.www.protocol.jar.JarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFileInternal(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.access$800(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader$1.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.ensureOpen(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.<init>(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$3.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getResource(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at sun.plugin2.applet.Plugin2ClassLoader.findClassHelper(Unknown Source)
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
network: Connecting https://www.example.com/example/applet/example-uploadapplet.jar with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
javax.net.ssl.SSLException: Received fatal alert: protocol_version
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.recvAlert(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.readRecord(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.performInitialHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.net.www.protocol.https.HttpsClient.afterConnect(Unknown Source)
    at sun.net.www.protocol.https.AbstractDelegateHttpsURLConnection.connect(Unknown Source)
    at sun.net.www.protocol.https.HttpsURLConnectionImpl.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.getJarFile(Unknown Source)
    at sun.net.www.protocol.jar.JarFileFactory.get(Unknown Source)
    at sun.net.www.protocol.jar.JarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFileInternal(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.access$800(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader$1.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.ensureOpen(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.<init>(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$3.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getResource(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at sun.plugin2.applet.Plugin2ClassLoader.findClassHelper(Unknown Source)
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
network: Connecting https://www.example.com/example/applet/edtftpj-2.1.0.jar with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
javax.net.ssl.SSLException: Received fatal alert: protocol_version
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.Alerts.getSSLException(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.recvAlert(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.readRecord(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.performInitialHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.security.ssl.SSLSocketImpl.startHandshake(Unknown Source)
    at sun.net.www.protocol.https.HttpsClient.afterConnect(Unknown Source)
    at sun.net.www.protocol.https.AbstractDelegateHttpsURLConnection.connect(Unknown Source)
    at sun.net.www.protocol.https.HttpsURLConnectionImpl.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.connect(Unknown Source)
    at sun.plugin.PluginURLJarFileCallBack.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.retrieve(Unknown Source)
    at sun.net.www.protocol.jar.URLJarFile.getJarFile(Unknown Source)
    at sun.net.www.protocol.jar.JarFileFactory.get(Unknown Source)
    at sun.net.www.protocol.jar.JarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.connect(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFileInternal(Unknown Source)
    at sun.plugin.net.protocol.jar.CachedJarURLConnection.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.getJarFile(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.access$800(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader$1.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.ensureOpen(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$JarLoader.<init>(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath$3.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getLoader(Unknown Source)
    at com.sun.deploy.security.DeployURLClassPath.getResource(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader$2.run(Unknown Source)
    at java.security.AccessController.doPrivileged(Native Method)
    at sun.plugin2.applet.Plugin2ClassLoader.findClassHelper(Unknown Source)
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
network: Connecting https://www.example.com/example/applet/com/org/example/applet/FileTransferApplet.class with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
network: Connecting https://www.example.com/example/applet/com/org/example/applet/FileTransferApplet.class with proxy=DIRECT
network: Connecting http://www.example.com:443/ with proxy=DIRECT
java.lang.ClassNotFoundException: com.org.example.applet.FileTransferApplet
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
basic: load: class com.org.example.applet.FileTransferApplet not found.
java.lang.ClassNotFoundException: com.org.example.applet.FileTransferApplet
    at sun.plugin2.applet.Applet2ClassLoader.findClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass0(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadClass(Unknown Source)
    at java.lang.ClassLoader.loadClass(Unknown Source)
    at sun.plugin2.applet.Plugin2ClassLoader.loadCode(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager.initAppletAdapter(Unknown Source)
    at sun.plugin2.applet.Plugin2Manager$AppletExecutionRunnable.run(Unknown Source)
    at java.lang.Thread.run(Unknown Source)
Ignored exception: java.lang.ClassNotFoundException: com.org.example.applet.FileTransferApplet
basic: Dialog type is not candidate for embedding
security: Reset deny session certificate store
security: Reset deny session certificate store
basic: Removed progress listener: sun.plugin.util.ProgressMonitorAdapter@1fbe203
I don't have an answer, but just wanted to provide more information.
I'm seeing the same thing where it tries to use http with port 443 which obviously won't work. Here the exception I get is different from yours: java.net.SocketException: Connection reset
I was seeing this behavior from a java applet and also from a java webstart program.
The user is not using any proxy server.
We tested Java 8 Update 25 on our own system here and it works fine. The user that had this issue has a Symantec anti-virus and firewall product installed. As far as I could tell it was not blocking anything.
We installed Java 7 Update 71 and then it started working.