This bug is related to bug #22323.

servers are still limited to 2047

while i think arma should better report its errors, it otherwise would not be expected that a server be run with incorrect settings

Firstly, according the the Biki values higher than 2047 will fall back to 2047, which is not what happens: https://community.bistudio.com/wiki/Arma_3_Startup_Parameters#Performance

Secondly, 64-bit Linux kernels have always granted 32-bit user-space applications the entire 32-bit address-space (unlike Windows which requires a 32-bit executable to be linked with /LARGEADDRESSAWARE to unlock the full 4 GiB). Consequently I consider 0 to 4096 a logical and thus valid range for -maxMem=.

Thirdly, this is an integer overflow due to an unchecked input parameter, which is always(!) a software bug. If a user can supply parameters which can lead to unexpected behaviour this must be caught by the application in question.

Fourthly, the -maxMem= values do not behave as advertised. Apparently the server uses way more memory than permitted via -maxMem= (after the integer overflow), but at some point fails anyway.

i'm not disagreeing that the game should handle the error correctly, but simply responding to your title that 'values beyond 2047 are broken' - only the error handling is broken; i could have phrased my sentence better

if the server only supports 2047 internally, it only supports 2047 (regardless of x64 linux), and to put a larger value is intentionally trying to break it, in other words, 'undefined behavior' - it is not to be expected in a real operating scenario.

that said, the wiki needs to be updated to clarify which options and defaults apply to only the Game, and Server; for example i believe the game actually supports 3072 (unless that never made it out of dev-branch - http://forums.bistudio.com/showthread.php?149636-Development-Branch-Changelog&p=2721184&highlight=maxmem#post2721184 )

edit:
+1, title is technically correct :D