Memory leak in Easywatermark?

Since a week/few weeks problems with watermarking a jpeg image. It wants to use 268435456bytes(256mb) for watermarking a single image. Look like there is a memory leak somewhere. My site is on dedicated virtual server, i do not want to increase php memory. 128mb memory is the limit with most hosters, my server has 256.

It does not happen with all jpeg images. I can provide a sample image for testing.

Hope the plugin author can solve this.

https://wordpress.org/plugins/easy-watermark/