No, it can't actually. There is a design limitation. Whenever people come around asking about this I tell them its a ton of work to do, manage, and it will cause server sometimes extreme server load.
How would you even navigate 1000+ forums/subforums. You have better tools at your disposal. Use thread prefixes/tags/etc to seperate your content out based on region instead of trying to make thousands and thousands of subforums.
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