Game freezes upon passing ±2147483647 blocks on the Y axis

The bug

When going below -2147483647 blocks or above 2147483647 blocks on the Y axis, the game freezes. There is nothing shown in the log when this happens. Note that in order to experience this issue, you need to start between -2147483647 blocks and 2147483647, and pass into the Y-values below/above those.

How to reproduce

1. Summon a pig
2. Put a saddle on the pig
3. Ride the pig
4. Enable your F3 debug screen
5. Run the following command:

   /data merge entity @e[type=pig,sort=nearest,limit=1] {Pos:[0.0,-2147483600.0,0.0]}

6. Dismount the pig
7. Descend to -2147483647
   Game freezes