OK, I can see some possible truth in this one.
When you die you have to revive. When you revive you move somewhere new. This causes loads of loading stuff. If you revive somewhere where there are more people this is even worse. In the end your RAM can't take it so whenever you load new stuff everything is getting swapped back and forth from RAM to hard-drive. This is one of the main causes of lag and lag-induced problems in the game.
Some solutions, if you are encountering such problems:
(i) Buy more RAM
(ii) Avoid other avatars as much as possible
(iii) Avoid death at all costs
(iv) Avoid moving around as much as possible