Interstellar space
Interstellar Space is a range of space outside of Kerbol's sphere of influence. Technically, this does not exist in the game as Kerbol's SOI is infinite. However, an escape velocity is present, and therefore a distance far enough away from the sun can be considered interstellar space.
Behavior
The Deep Space Kraken becomes increasingly active as one's distance from Kerbol increases. This means that as you venture farther into interstellar space, your ship is more likely to be torn apart. At an altitude of 400,000 Gm, the game engine begins to get confused and "spaz" out, in a manner reminiscent of Minecraft's Far Lands(prior to version 1.7). One known event that takes place is that any change of time acceleration will result in an encounter with the Hell Kraken, followed by the game crashing. Another glitch is that the Navball ceases to function. Instead of properly indicating velocity vector, it randomly jumps around headings rendering itself useless. (However, it is likely that one is currently time warping when they reach the altitude, which means that they will be unable to control their ship.) This could be due to the game detecting having left the Sun's SOI, giving it no center of gravity to align to.