Hi @jflowers,
A couple thoughts on this...
In the case of grading, there are often cases where teachers want to give extra credit. While you're correct that when creating a graded activity, you enter the points the activity is worth, that's not really a "max" value. Treating that as a max value would likely cause way more issues than it would solve.
With that being said, Canvas does pop up a warning if a teacher enters something in the gradebook that's way over the point value. I don't know what the exact threshold is for the warning to appear, but I'm almost positive it would have been triggered for the scenario shown on Reddit. If the teacher chooses to ignore the warning, I'm not sure what else can be done really.
I hope these couple things help frame this issue a bit more.
-Chris