PSQLException on upgrading from 1.0.x to 1.1.x

Caused by: org.postgresql.util.PSQLException: Large Objects may not be used in auto-commit mode.
    at org.postgresql.largeobject.LargeObjectManager.open(LargeObjectManager.java:260)
    at org.postgresql.largeobject.LargeObjectManager.open(LargeObjectManager.java:189)
    at org.postgresql.jdbc2.AbstractJdbc2BlobClob.<init>(AbstractJdbc2BlobClob.java:45)
    at org.postgresql.jdbc2.AbstractJdbc2Blob.<init>(AbstractJdbc2Blob.java:19)
    at org.postgresql.jdbc3.AbstractJdbc3Blob.<init>(AbstractJdbc3Blob.java:17)
    at org.postgresql.jdbc4.AbstractJdbc4Blob.<init>(AbstractJdbc4Blob.java:18)
    at org.postgresql.jdbc4.Jdbc4Blob.<init>(Jdbc4Blob.java:18)
    at org.postgresql.jdbc4.Jdbc4ResultSet.makeBlob(Jdbc4ResultSet.java:41)
    at org.postgresql.jdbc2.AbstractJdbc2ResultSet.getBlob(AbstractJdbc2ResultSet.java:379)
    at org.postgresql.jdbc2.AbstractJdbc2ResultSet.getBlob(AbstractJdbc2ResultSet.java:367)
    at org.jboss.jca.adapters.jdbc.WrappedResultSet.getBlob(WrappedResultSet.java:573)
    at org.hibernate.type.descriptor.sql.BlobTypeDescriptor$1.doExtract(BlobTypeDescriptor.java:65) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.type.descriptor.sql.BasicExtractor.extract(BasicExtractor.java:64) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.type.AbstractStandardBasicType.nullSafeGet(AbstractStandardBasicType.java:267) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.type.AbstractStandardBasicType.nullSafeGet(AbstractStandardBasicType.java:263) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.type.AbstractStandardBasicType.nullSafeGet(AbstractStandardBasicType.java:253) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.type.AbstractStandardBasicType.hydrate(AbstractStandardBasicType.java:338) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.persister.entity.AbstractEntityPersister.hydrate(AbstractEntityPersister.java:2969) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    at org.hibernate.loader.plan.exec.process.internal.EntityReferenceInitializerImpl.loadFromResultSet(EntityReferenceInitializerImpl.java:324) [hibernate-core-4.3.7.Final.jar:4.3.7.Final]
    ... 85 more