Its not really glitch. Server owners have been doing that for years. Even I do that. I am sure Nitrado Dev Team is already looking into what they can do. Typically its the vendors that control this not a host. Typically with non console servers its a bit more open what can be controlled and what cant. With consoles, it is very limited what can be done. I am sure the Game Dev once it has an update they will release to Nitrado. As for the limit of characters, I doubt it will be increased. Even ARK servers have a limit and have for years. You may want to contact Nitrado Support directly by submitting a ticket. They can escalate to Devs as needed. The moderators are really just guessing and providing info from prior experiences in the gaming industry.
sorry I dont have a precise answer.
Is the 64 Character count accurate for server names on PS4? and does a space = a character as well?