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When a Java program encounters an "java.lang.OutOfMemoryError" error, it means that there isn't enough memory available to create new threads for the program to continue running. This error message "unable to create new native Thread" specifically indicates that the underlying operating system has reached its limit on the number of native threads that can be created. This could happen if the program is trying to spawn too many parallel tasks or if there are resource limitations that prevent the creation of new threads. To address this problem, the program may need to be optimized to reduce the number of threads created or to improve memory management so that there is enough memory available for the program to operate properly.