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Global limit has been reached meaning

I am a free tier user - with well under the Daily Active Users threshhold. All of the sudden all login / refresh attempts started to return a 500 error:
{"error":"access_denied","error_description":"Global limit has been reached"}
even though the response headers looked okay for rate limiting:
X-RateLimit-Limit: 100
X-RateLimit-Remaining: 96
X-RateLimit-Reset: 1564005749

First of all - why is access_denied returning a 5xx status code? Should be 4xx…

What does Global limit has been reached mean? Does this have something to do with needing to get off the free tier? If so - this should have been brought to my attention sooner don’t you think?

Edit: This is still the case on the developer paid plan