First, thanks to Eugene and Adar for reporting and investigation. I have had some time now to debug this and I found the reason for the bug. Obviously something went wrong during the port of the patch series mentioned above from mainline to ubuntu kernel: There is the function fsnotify_destroy() which is never called in ubuntu. But this function ensures that all pending events are flushed and thereby ref counts on a fsnotify group held by those events are released. So what has to be done is call fsnotify_destroy in inotify_release(). Otherwise there will always be references held to the inotify group and the group will never get destroyed - which sooner or later results in a number of alive groups that exceeds the allowed max number. The same flaw can be found in the fanotify code. I will attach a patch that should fix the ref counts for both inotify and fanotify.
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