Nginx HHVM Wordpress issue with PHP Execution in one intermediate subdirectory

The WordPress content delivery is performed by the /blog/index.php script. Presumably, this is invoked when your send the URI /blog/ because of the $uri/ clause in try_files. But you have no rules to invoke /blog/index.php for any other URI beginning with /blog/....

One option is to make WorkPress the default:

location / {
    try_files $uri $uri/ /blog/index.php?$args;
    ...
}

Alternatively, add another location block to handle only the URIs that begin with /blog/...:

location /blog {
    try_files $uri $uri/ /blog/index.php?$args;
    ...
}