I am starting a forum thread instead of Mantis report because I think it is more convenient in this case, but just let me know if I should move to Mantis.
[based on helpdesk report]
scene: big lowpoly object with fine displacement, very high output resolution (let's say 5k x 5k)
Corona 1.1: the mesh needs to be subdivided manually, displacement is calculated based on screen size and max subdiv values - reasonable amount of ram is used in case of extreme subdivision as screen size is limited by max subdivs
Corona 1.2: no manual subdivision, excessive amount of ram is used as there is no max subdivs and Corona needs to do a lot of work to decide where the tiny subdivisions should be
Fix:
a) increase screen size at the cost of quality
b) enable filtering/blurring for the displacement map at the cost of some detail
c) leave all the settings as they are, but subdivide the mesh like in 1.1 to make it easier for Corona to decide how to subdivide the mesh (I think this is why it helps)
I think something like automatic "pre-subdivision" of lowpoly (low mesh density?) objects could help here.
In attachment is an example: 1 - lowpoly object, 2 - same object with subdivide modifier