WinpkFilter driver by default has 500 buffers for queing packets. When you send a large amount of packets on the network interface which is in the tunnel mode then driver internal queue is overloaded and network will be frozen until your user mode application process all these packets. So the reason is the application which does not process packets fast enough. May be it just does get enough CPU time. Try to assign packet filtering application a higher priority than your UDP sending application has. However, I don’t think that your network is really frozen, you rather expirience a huge packet drops because of massive UDP spoofing and this causes TCP resends and etc…
