Example: let’s assume you’ve set the cut-off budget too strict, spun off another shard for your stateful service (DB for example), it received and stored some data during the short window before some other service brought whole account over budget (i.e. paid egress crossed the threshold).
To bring VM and EBS charges to 0 (to implement your idea of ‘shut down everything’) AWS will have to delete production data.
While it may be OK when you’re experimenting, it’s really hard to tell in automated way.
So, to fully comply w/o risking losing customer data, AWS will have to stop charging for not running instances and inactive EBS volumes which most definitely bring on many kinds of abuse.
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There may be some other way to do this, maybe mark some services expendable or not, so they are stopped in the event of overspend.