websocket-rails: getting 301 redirect on ssl connection while on http things work fine.

Hi, Im getting a 301 error when on https. 'wss://example-site.com/websocket' failed: Error during WebSocket handshake: Unexpected response code: 301

Here is my nginx configuration

server {
       listen       443;
       ssl on;
       ssl_certificate /etc/ssl/example-site.com.crt;
       ssl_certificate_key /etc/ssl/example-site.key;

      server_name  example-site.com www.example-site.com;
      ssl_session_timeout 5m;
      ssl_protocols  SSLv2 SSLv3 TLSv1;
      ssl_ciphers  HIGH:!aNULL:!MD5;
      ssl_prefer_server_ciphers   on;


    root /home/ubuntu/example-site/current/public;
    passenger_enabled on;
    rails_env production;


    error_page   500 502 503 504  /50x.html;
    location = /50x.html {
        root   html;
    }

    location /websocket {
  proxy_pass http://localhost:3001/websocket;
      proxy_http_version 1.1;
  proxy_set_header  X-Real-IP  $remote_addr;
      add_header Access-Control-Allow-Origin *;                                                                                                                                                                       
  proxy_set_header Upgrade websocket;
      proxy_set_header Connection Upgrade;
      proxy_set_header Host $host;
      proxy_set_header X-Real-IP $remote_addr;
      proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
      rewrite /websocket/(.*) /$1 break;
     }

} `

any ideas as to why ? I had successfully configured this with http but this doesnt work on https. Any ideas or anyone encountered this anytime ?