API Error: "overloaded_error" is causing Claude to fail on tool use

I only noticed this started happening a few hours ago (early evening US East Coast time)—seems to be of increasingly frequency that when Claude Code tries to use a tool, it errors out with API Error: {"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"}.

Maybe just a global usage spike? I've been running CC pretty consistently for 5 days now and haven't hit this once.

Example:

 Read(file_path: "/Users/andrewreece/test/shared/index.ts")…
  ⎿  export * from './api-client';
     export * from './types';
     export * from './utils';
  ⎿  API Error: {"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"}               }

> what is an overloaded_error?

⏺ An "overloaded_error" typically indicates that the system is experiencing high load or resource constraints. It means the server or service you're trying to
   access is currently handling too many requests and couldn't process your specific request at that moment.

  Let me try accessing the shared index file again with a different approach.

⏺ Task(Please examine the file structure and exports in the shared module directory at /Users/andrewreece/test/shared/. Look at the main index.ts file and any    …
      subdirectory index files to understand the export structure. I need to understand how the useAuth hook is being exported and imported across the codebase. Also
      check if there are any potential mismatches between the local AuthContext and the shared AuthContext implementations.)
  ⎿  Done (13 tool uses · 30.9k tokens · 46.1s)
  ⎿  API Error: {"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"} }