diff --git a/Documentation/technical/api-trace2.txt b/Documentation/technical/api-trace2.txt
index 18b79128fd..5afd643fa6 100644
--- a/Documentation/technical/api-trace2.txt
+++ b/Documentation/technical/api-trace2.txt
@@ -128,7 +128,7 @@ yields
 
 ------------
 $ cat ~/log.event
-{"event":"version","sid":"sid":"20190408T191610.507018Z-H9b68c35f-P000059a8","thread":"main","time":"2019-01-16T17:28:42.620713Z","file":"common-main.c","line":38,"evt":"1","exe":"2.20.1.155.g426c96fcdb"}
+{"event":"version","sid":"sid":"20190408T191610.507018Z-H9b68c35f-P000059a8","thread":"main","time":"2019-01-16T17:28:42.620713Z","file":"common-main.c","line":38,"evt":"2","exe":"2.20.1.155.g426c96fcdb"}
 {"event":"start","sid":"20190408T191610.507018Z-H9b68c35f-P000059a8","thread":"main","time":"2019-01-16T17:28:42.621027Z","file":"common-main.c","line":39,"t_abs":0.001173,"argv":["git","version"]}
 {"event":"cmd_name","sid":"20190408T191610.507018Z-H9b68c35f-P000059a8","thread":"main","time":"2019-01-16T17:28:42.621122Z","file":"git.c","line":432,"name":"version","hierarchy":"version"}
 {"event":"exit","sid":"20190408T191610.507018Z-H9b68c35f-P000059a8","thread":"main","time":"2019-01-16T17:28:42.621236Z","file":"git.c","line":662,"t_abs":0.001227,"code":0}
@@ -616,11 +616,22 @@ only present on the "start" and "atexit" events.
 {
 	"event":"version",
 	...
-	"evt":"1",		       # EVENT format version
+	"evt":"2",		       # EVENT format version
 	"exe":"2.20.1.155.g426c96fcdb" # git version
 }
 ------------
 
+`"overload"`::
+	This event is created in a sentinel file if we are overloading a target
+	trace directory (see the trace2.maxFiles config option).
++
+------------
+{
+	"event":"overload",
+	...
+}
+------------
+
 `"start"`::
 	This event contains the complete argv received by main().
 +
diff --git a/t/t0212-trace2-event.sh b/t/t0212-trace2-event.sh
index 2ff97e72da..7081153a11 100755
--- a/t/t0212-trace2-event.sh
+++ b/t/t0212-trace2-event.sh
@@ -279,7 +279,9 @@ test_expect_success "don't overload target directory" '
 	) &&
 	echo git-trace2-overload >>expected_filenames.txt &&
 	ls trace_target_dir >ls_output.txt &&
-	test_cmp expected_filenames.txt ls_output.txt
+	test_cmp expected_filenames.txt ls_output.txt &&
+	head -n1 trace_target_dir/git-trace2-overload | grep \"event\":\"version\" &&
+	head -n2 trace_target_dir/git-trace2-overload | tail -n1 | grep \"event\":\"overload\"
 '
 
 test_done
diff --git a/trace2/tr2_dst.c b/trace2/tr2_dst.c
index af3405f179..eedc5a332f 100644
--- a/trace2/tr2_dst.c
+++ b/trace2/tr2_dst.c
@@ -50,15 +50,19 @@ void tr2_dst_trace_disable(struct tr2_dst *dst)
 /*
  * Check to make sure we're not overloading the target directory with too many
  * files. First get the threshold (if present) from the config or envvar. If
- * it's zero or unset, disable this check.  Next check for the presence of a
- * sentinel file, then check file count. If we are overloaded, create the
- * sentinel file if it doesn't already exist.
+ * it's zero or unset, disable this check. Next check for the presence of a
+ * sentinel file, then check file count.
+ *
+ * Returns 0 if tracing should proceed as normal. Returns 1 if the sentinel file
+ * already exists, which means tracing should be disabled. Returns -1 if we are
+ * overloaded but there was no sentinel file, which means we have created and
+ * should write traces to the sentinel file.
  *
  * We expect that some trace processing system is gradually collecting files
  * from the target directory; after it removes the sentinel file we'll start
  * writing traces again.
  */
-static int tr2_dst_overloaded(const char *tgt_prefix)
+static int tr2_dst_overloaded(struct tr2_dst *dst, const char *tgt_prefix)
 {
 	int file_count = 0, max_files = 0, ret = 0;
 	const char *max_files_var;
@@ -97,8 +101,9 @@ static int tr2_dst_overloaded(const char *tgt_prefix)
 		closedir(dirp);
 
 	if (file_count >= tr2env_max_files) {
-		creat(sentinel_path.buf, 0666);
-		ret = 1;
+		dst->overloaded = 1;
+		dst->fd = open(sentinel_path.buf, O_WRONLY | O_CREAT | O_EXCL, 0666);
+		ret = -1;
 		goto cleanup;
 	}
 
@@ -110,7 +115,7 @@ static int tr2_dst_overloaded(const char *tgt_prefix)
 
 static int tr2_dst_try_auto_path(struct tr2_dst *dst, const char *tgt_prefix)
 {
-	int fd;
+	int overloaded;
 	const char *last_slash, *sid = tr2_sid_get();
 	struct strbuf path = STRBUF_INIT;
 	size_t base_path_len;
@@ -126,7 +131,19 @@ static int tr2_dst_try_auto_path(struct tr2_dst *dst, const char *tgt_prefix)
 	strbuf_addstr(&path, sid);
 	base_path_len = path.len;
 
-	if (tr2_dst_overloaded(tgt_prefix)) {
+	overloaded = tr2_dst_overloaded(dst, tgt_prefix);
+	if (!overloaded) {
+		for (attempt_count = 0; attempt_count < MAX_AUTO_ATTEMPTS; attempt_count++) {
+			if (attempt_count > 0) {
+				strbuf_setlen(&path, base_path_len);
+				strbuf_addf(&path, ".%d", attempt_count);
+			}
+
+			dst->fd = open(path.buf, O_WRONLY | O_CREAT | O_EXCL, 0666);
+			if (dst->fd != -1)
+				break;
+		}
+	} else if (overloaded == 1) {
 		strbuf_release(&path);
 		if (tr2_dst_want_warning())
 			warning("trace2: not opening %s trace file due to too "
@@ -136,18 +153,7 @@ static int tr2_dst_try_auto_path(struct tr2_dst *dst, const char *tgt_prefix)
 		return 0;
 	}
 
-	for (attempt_count = 0; attempt_count < MAX_AUTO_ATTEMPTS; attempt_count++) {
-		if (attempt_count > 0) {
-			strbuf_setlen(&path, base_path_len);
-			strbuf_addf(&path, ".%d", attempt_count);
-		}
-
-		fd = open(path.buf, O_WRONLY | O_CREAT | O_EXCL, 0666);
-		if (fd != -1)
-			break;
-	}
-
-	if (fd == -1) {
+	if (dst->fd == -1) {
 		if (tr2_dst_want_warning())
 			warning("trace2: could not open '%.*s' for '%s' tracing: %s",
 				(int) base_path_len, path.buf,
@@ -161,7 +167,6 @@ static int tr2_dst_try_auto_path(struct tr2_dst *dst, const char *tgt_prefix)
 
 	strbuf_release(&path);
 
-	dst->fd = fd;
 	dst->need_close = 1;
 	dst->initialized = 1;
 
diff --git a/trace2/tr2_dst.h b/trace2/tr2_dst.h
index 3adf3bac13..e8abe1e490 100644
--- a/trace2/tr2_dst.h
+++ b/trace2/tr2_dst.h
@@ -9,6 +9,7 @@ struct tr2_dst {
 	int fd;
 	unsigned int initialized : 1;
 	unsigned int need_close : 1;
+	unsigned int overloaded : 1;
 };
 
 /*
diff --git a/trace2/tr2_tgt_event.c b/trace2/tr2_tgt_event.c
index c2852d1bd2..f27bc572c5 100644
--- a/trace2/tr2_tgt_event.c
+++ b/trace2/tr2_tgt_event.c
@@ -10,16 +10,17 @@
 #include "trace2/tr2_tgt.h"
 #include "trace2/tr2_tls.h"
 
-static struct tr2_dst tr2dst_event = { TR2_SYSENV_EVENT, 0, 0, 0 };
+static struct tr2_dst tr2dst_event = { TR2_SYSENV_EVENT, 0, 0, 0, 0 };
 
 /*
- * The version number of the JSON data generated by the EVENT target
- * in this source file.  Update this if you make a significant change
- * to the JSON fields or message structure.  You probably do not need
- * to update this if you just add another call to one of the existing
- * TRACE2 API methods.
+ * The version number of the JSON data generated by the EVENT target in this
+ * source file. The version should be incremented if new event types are added,
+ * if existing fields are removed, or if there are significant changes in
+ * interpretation of existing events or fields. Smaller changes, such as adding
+ * a new field to an existing event, do not require an increment to the EVENT
+ * format version.
  */
-#define TR2_EVENT_VERSION "1"
+#define TR2_EVENT_VERSION "2"
 
 /*
  * Region nesting limit for messages written to the event target.
@@ -107,6 +108,19 @@ static void event_fmt_prepare(const char *event_name, const char *file,
 		jw_object_intmax(jw, "repo", repo->trace2_repo_id);
 }
 
+static void fn_overload_fl(const char *file, int line)
+{
+	const char *event_name = "overload";
+	struct json_writer jw = JSON_WRITER_INIT;
+
+	jw_object_begin(&jw, 0);
+	event_fmt_prepare(event_name, file, line, NULL, &jw);
+	jw_end(&jw);
+
+	tr2_dst_write_line(&tr2dst_event, &jw.json);
+	jw_release(&jw);
+}
+
 static void fn_version_fl(const char *file, int line)
 {
 	const char *event_name = "version";
@@ -120,6 +134,9 @@ static void fn_version_fl(const char *file, int line)
 
 	tr2_dst_write_line(&tr2dst_event, &jw.json);
 	jw_release(&jw);
+
+	if (tr2dst_event.overloaded)
+		fn_overload_fl(file, line);
 }
 
 static void fn_start_fl(const char *file, int line,
diff --git a/trace2/tr2_tgt_normal.c b/trace2/tr2_tgt_normal.c
index 00b116d797..e91633468d 100644
--- a/trace2/tr2_tgt_normal.c
+++ b/trace2/tr2_tgt_normal.c
@@ -9,7 +9,7 @@
 #include "trace2/tr2_tgt.h"
 #include "trace2/tr2_tls.h"
 
-static struct tr2_dst tr2dst_normal = { TR2_SYSENV_NORMAL, 0, 0, 0 };
+static struct tr2_dst tr2dst_normal = { TR2_SYSENV_NORMAL, 0, 0, 0, 0 };
 
 /*
  * Use the TR2_SYSENV_NORMAL_BRIEF setting to omit the "<time> <file>:<line>"
diff --git a/trace2/tr2_tgt_perf.c b/trace2/tr2_tgt_perf.c
index ea0cbbe13e..bebac4782d 100644
--- a/trace2/tr2_tgt_perf.c
+++ b/trace2/tr2_tgt_perf.c
@@ -11,7 +11,7 @@
 #include "trace2/tr2_tgt.h"
 #include "trace2/tr2_tls.h"
 
-static struct tr2_dst tr2dst_perf = { TR2_SYSENV_PERF, 0, 0, 0 };
+static struct tr2_dst tr2dst_perf = { TR2_SYSENV_PERF, 0, 0, 0, 0 };
 
 /*
  * Use TR2_SYSENV_PERF_BRIEF to omit the "<time> <file>:<line>"
