Why does the error "mkdir: cannot create directory: Too many links" come, while trying to create sub-directories in a directory ?

Solution Verified - Updated -

Issue

  • Unable to create new directories in a particular directory after creating '31998' directories.
  • Facing the error below while creating directories.
mkdir: cannot create directory: Too many links 

Environment

  • Red Hat Enterprise Linux 5
  • EXT3 Filesystem

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