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its not there are scale points where once you hit a critical number you need to re-architect your backend. 1k,10k,1mil, etc. usually these vary based on your app. but they're usually exponential so once you hit the higher levels it takes much longer to reach the next level.
on top of that you usually by the higher tiers have proper backpressure and signals being sent to the frontend systems to dynamically manage the load generated. so suddenly uptime is much easier.
when you see large repeated failures like this the cause is almost always corporate causing issues.
it this particular case i bet it cutting engineering head count and increase AI slop generated code without proper review by engineers. which ive been hearing a lot more from my engineering friends.