Direct answer
Spread-out players load different chunks, entities and regions. Two hundred players together and two hundred players scattered across new terrain are not equal workloads.
How to check it
- Compare new-chunk generation, loaded chunks and MSPT while a test group visits a compact area and while the same group explores. Profile the actual player peak.
- Record the original configuration or test conditions, capture a profile or a repeatable observation, and identify the affected world or player group.
- Make the measurement under the same player count and workload you will later use to verify the change.
What to change
Pre-generate frequently explored terrain and tune view/simulation distance carefully. Player count by itself is not enough for RAM or CPU sizing; world activity and per-player chunk overlap matter.
For Folia, player distribution may permit more parallel ticking, but a dense single region is still a bottleneck.
Software and version notes
Check the active version and generated configuration before copying paths or values. Different forks and mod loaders may implement this behavior differently.
This article is written for Paper / compatible servers. Configuration keys and defaults can move between versions. The source material checked for this page includes PaperMC profiling guide. If your server is Folia, Leaf, Purpur, Fabric, Forge, NeoForge, or another fork/loader, do not assume a Paper-only setting exists or behaves identically.
Verify the result
Repeat the same test with the same software build, player count and world activity. Compare the targeted symptom and any spark measurements, then check that intended game mechanics still work. If the change does not produce a reproducible improvement, revert to the recorded baseline.