I think Putty Squad should run on a CD32 you can free over 1.9mb on a CD32 using simple tools. I don't think Putty Squad would use 100% 2MB memory, that was never expect from a regular A1200 either.
Maybe other coders or whdload authors can chime in to confirm this, running with whdload is the problem I think. It would run fine without it, with just assigning the disks assuming they are not protected and are in amiga dos which I guess they might not be? It has worked for other AGA games.
On a real CD32 there is usually more memory available than on WinUAE due to people using a hard disk for testing.
Maybe we need a bounty challenge
I put money on StingRay or Psygore