Typically this is an issue with a share and file access in that the server can access the directory that contains the overviews (stored with the geodatabase), but not the primary data. If you say this is not the case here and that any zoom in results in the display disappearing then one possibility is that the Max Size of Request (Cols,Rows) in the default properties has been set too low. Check also the values on the server. Typically the defaults are 4100,15000 which enable requests large enough for the biggest screens and plotting to be allowed, while by default stopping large exports. If these values are set small (eg 1024x1024) then you may get the case where zoomed out the image does not cover the whole screen and is within the limit, but with any zooming the image covers the whole screen and so turns off.