I can honestly say that this has happened to me and a friend of mine, as well. My friend was really stung by this when he hit a pick 4 while betting on VIP. The pick 4 paid $4500 or something around there. He too did not read the rules and was furious.
There are a thousand ways to exit a race disappointed and astonished of the outcome and about 3 ways in which a happy ending will occur.
Best advice is, like many said here, join a site like Youbet or Brisbet or others that do not cap.
Sorry to hear about the disappointment though.....know the feeling.
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