It looks like user resource limit.
You may see it using command:
ulimit -a | grep file
or in file /etc/security/limits.
The default value for "fsize" is 2097151 of 512 bytes bloks (approximately 1GB).
You may change this value by using command like:
ulimit -f 4194302
You can change port in /etc/ssh/ssh_config and run sshd as daemon.
And you can run few copies of sshd with its own configuration file. For example
# sshd -f /etc/ssh/ssh_config
# sshd -f /etc/ssh/ssh_config_1
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