This issue occurs with binutils-gold and GHC 7.4. There is an old mailing list entry discussing this issue.
For example, you might need binutils-gold for LLVM, but GHC 7.4 cannot handle the GOLD linker correctly because it does not understand the --hash-size parameter.
As noted in the mail list, the solution to this is to remove binutils-gold, for example. on using Ubuntu:
sudo apt-get remove binutils-gold
This will cause /usr/bin/ld to re-symbolize to a non-GOLD linker version. After that, repeat the cabal install command.
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