Memory Spikes on server and interacting with blocks/entities/chests isn't possible

Breaking blocks doesn't work, opening chests and inventory don't work, mobs freeze and don't respond, I randomly get teleported and eventually it disconnects me from the server. I have to reboot the server in order to log back in. Then this happens again. It seems as though if I stay in the chuck I load the game in then there isn't a problem. As soon as I leave that chunk and interact with anything this behavior begins. 

I have a video of the behavior but it's too large to upload.