NotReadableException in Laravel with Glide and Intervention Image

I have fairly simple site in Laravel 5 with few static pages. One of features site uses is Glide server for image manipulation so in my composer.json I have this line

"league/glide": "0.3.*",

Apparently as a dependancy this package is also installed

"intervention/image": "~2.1",

Now it seems like I've set everything up, but when I try hitting some image via url, I get

NotReadableException in Decoder.php line 21:
Unable to read image from file (/tmp/GlidesCmrgC).

Where everything after Glide in tmp file name is random. So obviously file is loaded and not missing, but still something is going wrong. I was looking into documentation, but couldn't find anything.

Here is an ImageController file that is routed to handle Glide requests

<?php 
namespace app\Http\Controllers;

use Illuminate\Http\Request;
use League\Glide\Server as GlideServer;

class ImageController extends Controller
{
    public function output(Request $request, GlideServer $glide)
    {
        // Also tried this 
        // $glide->outputImage($request);
        $glide->getImageResponse($request);
    }
}

In my AppServiceProvider.php I have this part

$this->app->singleton('League\Glide\Server', function ($app) {

        $filesystem = $app->make('Illuminate\Contracts\Filesystem\Filesystem');
        return \League\Glide\ServerFactory::create([
            'source' => $filesystem->getDriver(),
            'cache' => $filesystem->getDriver()
        ]);

        // Also tried this 
        // $filesystem = $app->make('League\Flysystem\FilesystemInterface');

        /* return \League\Glide\ServerFactory::create([
            'source' => $filesystem,
            'cache' => storage_path().'/app/.cache',
            'base_url' => 'img',
        ]); */
    });

And in routes.php I have this route

get('/img/{path}', 'ImageController@output');

via Chebli Mohamed