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However this is a message from the server provider shockbyte CEO, not the palworld devs, so this can't really be considered as the devs confiming a memory leak. It is also just factually untrue, according to this statement there is a bug that I can start a dedicated server and do nothing in it and the server memory will cascade out of control and crash, definitely not what happens.
Running out of memory would only cause performance loss if you have slow swap or lots of fragmentation. Otherwise it should run just fine until there's none left, then crash or start glitching.
so i feel it might have something to do with either
A. hardware used
B. settings used like target framerate
C. world/base issue causing memory leak. maybe all 3 bases next to each other with max pals working? too many objects in the base? too many viewing cages? any strange custom world settings like infinite items on the floor?
edit: or D. u have too many third party apps chugging ram in the background
easiest way to replicate this is just to fly all over the map in one game session or just use mod with more bases and game will keep them in memory, eventually causing crashes or performance drop over time.
game engines do not stop memory leak, the act of programming just is to introduce bugs.