When the processor is run at a speed that is higher than it is supposed to be run at, there is a chance that the internal components in the processor may break down over time. The internal features of a CPU are sized in the range of microns.
It is possible that when the processor is stressed by running at too high a frequency, along with the extra heat that overclocking incurs, that the actual metal lines inside the processor may form shorts or opens and damage the processor over a period of time. How likely this is to happen, and how long it takes is really not known. The system may work fine for a while and then suddenly stop working.
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