Somethings wrong there. Your launch parmaters are not used at all. Here is mine
I run it from server folder. This is my OTHERPARAMS line
2$ ps aux | grep server
massive 4044 0.0 0.0 10132 840 pts/0 S+ 08:28 0:00 grep server
massive 8008 0.0 0.0 13212 1440 ? S Jun18 0:00 /bin/bash ./arma2oaserver watchdog
massive 8010 24.7 5.0 868728 829428 ? Sl Jun18 477:43 /home/massive/arma2/server2/server -server -config=ace2srv.cfg -port=2433 -pid=/home/massive/arma2/server2/2433.pid -mod=ca;expansion;expansion/beta;expansion/beta/expansion;@cba;@cba_a2;@cba_oa;@server; -cfg=arma2oa.cfg -cpucount=4 -exthreads=7 -netlog
My script is a bit custom wouldnt want to confuse you with it, and I run CO server. If you haven't used OTHERPARAMS there when you launched it then its ok, but if you did its not working for some reason.
OTHERPARAMS='-cfg=arma2oa.cfg -cpucount=4 -exthreads=7 -netlog'
Post you complete arma2server script.