Is there any messages in your dmesg log? Also what's the underlying OS distro? I'd be suspicious that your kernel is probably configured using stock settings, you probably need to increase file descriptors or some limited resource on the box.
For example
This command shows the maximum number of files that your kernel is able to have open:
$ cat /proc/sys/fs/file-max
309210
This command shows how many are in use of the available:
$ cat /proc/sys/fs/file-nr
5568 0 309210
Where:
5568 The number of allocated file handles.
0 The number of unused-but-allocated file handles.
309210 The system-wide maximum number of file handles.
So in the above case I have plenty of file handles available.
If you want to increase the maximum number of descriptors you can do it on the live system with this command:
sudo sysctl -w fs.file-max=400000
To make it the default from reboot to reboot:
vim /etc/sysctl.conf
And add the following line:
fs.file-max = 400000
Additional sysctl parameters
The above is one possible issue. There are a multitude of parameters that are configured in the kernel which limits it's resources on a given system. You can see the complete list of parameters using this command:
sysctl -a
Don't just arbitrarily change values in here!!! Research them to see if they're set to a limit that privoxy is exceeding and then test to see if raising this parameter fixes your issue.
Also try to understand if it makes sense that you're running out of this resource. If you're running out of file descriptors, don't just arbitrarily raise it to a higher value. Trying to determine if privoxy isn't letting go of open files correctly is a much better solution to your problem rather then just blindly raising the limit.
References