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so far i saw the server and the whois lookup ( shared ip ) then i saw around the 1200 clients
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For an unmetered reseller with 1200 clients on one server, assuming all the other clients have the same or similar packages to yours, then that is most certainly overselling. The host probably freaks out whenever someone starts to use even a tiny bit of resources. The whole server is probably like a house of cards, one user starts to use their account too much and the whole server comes crashing down from too much load.
BMR777