Good day, Mr. Radka! Hope everyone's doing well. I've finally awaken from my slumber and I'm ready to piss the day away lol
Allow me to explain the situation a little bit better so we can all be properly informed..
The free spins were an email promotion that were attached to a 100% match bonus.
Here is the actual promotional email:

As you can see, there is nothing showing a cap on free spins winnings.
Now, I don't expect every single detail to always be readily available, but things that limit your potential winnings are kind of important. If they're not in the email, then surely they should be shown on the bonus information tab or a promotional terms and conditions page. This promotion had neither.
To make matters worse, support had to be contacted to add the spins as they didn't activate automatically. This is important for the following reason:

Note the use of the word "cashout" in their no deposit terms.
When she contacted support after the funds disappeared, she had told them that this must be a mistake by the system. Because the spins were added manually, she proposed that maybe the system saw them as a no deposit bonus and then removed everything over $50.
Their response is as follows:


Note the usage of the word "win" instead of "cashout".
The way she's describing their interpretation of the rules makes little sense, as you could win $100 in the free spins, complete $4000 worth of wagering, and then watch your balance drop to less than what you'd originally won!
Imagine if you'd made a $50 deposit to begin with!!
I can't speak for everyone, but when I see wording such as "free spins have a max win of $50", I understand that to mean the actual free spins. Whether 5, 10 or 50, your win will be capped at $50. If you manage to complete the $2000 worth of wagering attached to that $50, then good on you! You deserve to keep whatever you've won along the way.
Not at LevelUp, though.
They consider "free spins" be the entire act of the spins and the following wagering requirements, which means, if you happen to get incredibly lucky and win something like $300 on 100 free spins and then manage to complete the $12000 worth of wagering, they will reward you with a giant middle finger.
Enjoy your $50!!