Thanks for responding!

Before the upgrade everything seemed to be fine. I only noticed this
behavior after the upgrade.

The ulimit on the Linux VM instance (where artifactory is installed) is set
to unlimited, so  I am sure its not because of too many open files. I even
tried rebooting the instance... it didn't help.

And I don't see a security.xml file in ARTIFACTORY_HOME/etc. 
I only see the following files:
 artifactory.config.bootstrap.xml
 artifactory.config.latest.xml
 artifactory.system.properties
 logback.original.xml
 logback.xml
 mimetypes.xml
 /plugins
 /repo
 /ui




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