You are correct in being alarmed. Redeployment is always a tricky business - the old
classes will be released only if there are no more references to them. So if there are
issues with the code, you could each time increase the amount of permgen space used each
time you redeploy. (If your do a forum search for permgen out of memory error you will see
that a lot of others have run into this.) A profiling tool, or heap analysis tool, might
help you determine which classes are still in use and who is using them.
This is one of the reasons why turning off the hot deployer is recommended for production
use.
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