After running npm install, to repro:
$ ./node_modules/.bin/webpack
Hash: a9fb8f88c6cebfe91bfe
Version: webpack 1.15.0
Time: 324ms
+ 1 hidden modules
ERROR in ./src/index.js
Module build failed: TypeError: fileSystem.statSync is not a function
at module.exports (/nail/home/avohra/packages/temp/node_modules/babel-loader/lib/utils/exists.js:7:25)
at find (/nail/home/avohra/packages/temp/node_modules/babel-loader/lib/resolve-rc.js:13:9)
at Object.module.exports (/nail/home/avohra/packages/temp/node_modules/babel-loader/lib/index.js:113:132)
Downgrading babel-loader to 7.1.1 fixes the issue:
$ ./node_modules/.bin/webpack
Hash: c87d7c1e5c41b3bc1a1d
Version: webpack 1.15.0
Time: 412ms
Asset Size Chunks Chunk Names
output.js 1.62 kB 0 [emitted] main
+ 2 hidden modules