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Both are correct, in a way, and Afriman used the wrong terminology, but the result is the same.
If your upload bandwidth is fully utilised, uploading a file, other web pages / protocols are unable to send an ACK, back to remote servers so, in turn, they will wait for that ACK or time out and no data will be sent. It will appear as if your downloads die as a result of upload bandwidth but in reality it dies because the handshake failed.
You can mitigate it with shaping locally, and limit upload bandwidth available to any one application, to prevent it using the full bandwidth. An upload manager or something like netlimiter should help if you do a lot of uploads.
Cheers
Chris
This explanation is quite thorough and detailed. I appreciate you sharing it!