The JSON spec [1] clearly states, in section 9:
An implementation may set limits on the maximum depth of
nesting.
Nevertheless, the parser failing at only 100 levels of nesting is shockingly bad.
I work with complex JSON every day. Even painfully complex structures like Facebook's Ad Insights API or AWS Lambda Events only get around 5 levels deep, so 10 deep is already exotic, and I can't even conceive of a use case for 100. The method of failure is important too--would it really be better to just keep going forever, or die when maximum stack depth was reached, or the machine runs out of RAM (or swap space...)? Treating absurdly nested JSON the same way you would any invalid JSON input seems like a much friendlier and less dangerous approach overall.
When I was testing Gumbo [1] on all the HTML files in Google's index, I ran into one that had 48,000 levels of nested HTML tags. (Ironically, Gumbo itself handled this fine, but the test script I used to verify the output died.) I posted it to Memegen with a link to the original source URL, and then got called out for crashing Chrome. Apparently I wasn't the only one who didn't think about recursion limits in a parser. (Both bugs have since been fixed.)
What was the wayward HTML file? It was an XML file served with the wrong content type. The file contained 48,000 self-closing tags. When you parse an unknown element with a self-closing tag in HTML, it ignores the trailing />, treats it as an ordinary unknown element, and happily keeps generating a deeper and deeper DOM.
A stack overflow that results in a segfault is a pretty serious DOS vulnerability in a JSON parser. You probably could take down a good portion of the Internet by sending JSON requests to their AJAX endpoints that consist of 1M of {.