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Why was there not an upper limit on the price that customers are willing to pay?

This seems to fall in the same category of AWS customers accidentally having bills enough to bankruptcy.

In another thread people mentioned that there are strict laws regarding when you can cut off customers (eg. not when it's cold outside), so placing an upper limit isn't an option because griddy has no way of turning their customers off.

In retrospect, Griddy should be paired with a smart breaker that the customer can shut off based on the price. Shutting off your own power doesn't really help in a life-or-death scenario though.

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