Depends on the audience of the web sites your ads were displayed on. If you were, for instance, advertising for a US company on a site that had lots of viewers from Europe, the exhaustion early in the day might have been legitimate. Europe is a few time zones ahead.
If your intention is to advertise only to the US market, which is what I assume from your example, you're doing it wrong if you are even showing AdWords to audiences in Europe. Unless, of course, they are using a VPN or proxy or other means to browse with a US-based IP address.
Heck, you can target down to individual zipcodes, Congressional districts, counties, Metro areas, and a bunch more ways. No excuse other than ignorance if you or your clients ads are running in an entirely different continent.
If you want your ads for your US company to appear in Europe as well as in USA, then you need to create a sufficient AdWords daily budget, plus perhaps do time of day targeting. Or to be better at it, have separate AdWords campaigns for each geo, with separate budgets, even if you're using the same ads.
There's a lot I don't like about AdWords, including how Google loves to split functionality into different menus and services and levels of products to create massive confusion about how to use them. Like WTF isn't there one single thing that has all my ad budgets, my analytics, my webmaster tools, my everything-about-it, all in one damn place? Or to use another, non-ads example, Google Voice can be used as VOIP from a computer, but only by a not-well-explained combo of Google Voice + Google Chat + Gmail page + Google Talk plugin, something no non-technical "normal person" will ever discover. Some of that dysfunctional UX comes from Google's only-engineers culture, but on the advertising products I think some of it is also deliberate ambiguity so you will inadvertantly spend more. Same reason that in USA and many other jurisdictions, Google will not let you prepay for a fixed spend, only postpay - they like that you can't quite control it, and the house always has the edge.
But they do provide geotargeting tools, rather good ones. So no excuse if your ads are running in the wrong locales.
That doesn't make the sleazy service abusing AdWords any less evil themselves. But if the ads are eaten up by wrong geolocations, whether from that sleazy service or just from legitimate browsing clicks in the wrong countries, that is the advertiser's own fault for not using the control Google gives them.