Try looking at calls to freeMemory() in loop() to see if you're hitting its max:
int freeMemory() {
int free_memory;
if ((int)__brkval == 0) {
free_memory = ((int)&free_memory) - ((int)&__heap_start);
} else {
free_memory = ((int)&free_memory) - ((int)__brkval);
free_memory += freeListSize();
}
return free_memory;
}