Given the program:

import System.Environment

main :: IO ()
main = do
    putStrLn "Starting"
    withArgs (replicate 1000 "") $ return ()

When run with:

ghc --make WithArgsBug.hs -rtsopts && WithArgsBug +RTS -K1K

The program prints out "Starting", then loops forever, taking 1 CPU core and allocating memory (approx 1Gb per min), until the computer is unresponsive. The program does not respond to Ctrl-C and has to be killed from the task manager.

The -K1K flag limits the stack to approx 33Kb.