The proctor should just make sure that it is the team members working on the problems and no outside help is being provided from other individuals. The proctor should ensure that the student teams are not sharing code, which is strictly prohibited. In general, proctors help ensure that the students are comfortable and are able to get food, water, and exercise during the 24 hours. The main goal is for the participants to have fun. The students do not have to be isolated.
Sleep is part of making sure the team members are comfortable. The team members can alternate getting some sleep, and you can make your own arrangements for sleeping.
There may be some surprises, about every six to eight hours, so it is important to keep monitoring the contest.