which I'm not sure if it's true because if you can, why would they allow you go that high.
We don't really know, but that kind of thing in general is a pretty common thing with various types of hardware (not just ebike-specific stuff), for setup software/etc to allow outside-safe-range-for-the-hardware settings, usually with no warnings or confirmation dialogs letting you know this could cause a problem.
For this case, the controller should be reading the voltage from the motor phases and seeing a trend upward that could result in a voltage higher than it's hardware can handle, and either shutdown or refuse commands leading to higher RPM than that. But apparently it doesn't.
For another instance I can recall, Kelly allows changing settings on a controller while the motor is spinning, which bricks the controller. We don't know why they haven't corrected this problem, but some of their controllers do this, and have for years. If it was just a software bug I'd expect it to be fixed, since that's pretty serious...but they haven't, so one might assume it's a "feature".

They do have a warning in the manual about it, but AFAIK there is nothing in the software itself that tells the user not to do whatever it is they are about to do will break the controller. (at least one person has fixed the controller by reflashing the MCU "from scratch" with the right firmware, but that shouldnt' be necessary--this kind of problem shouldn't even be allowed by the software).
Truthfully, a well-designed controller (etc) would have setup software (and internal firmware) that cannot be set to more than say, 80% of whatever hardware specification the setting affects. Then there is always margin to allow for parts variation, manufacturing, environment, etc., so even under the worst-case usage and hardest-usage settings, the controller is always well within it's physical capabilities. (it should also have safety features like thermal sensing in the appropriate places to rollback output even more when necessary). This will increase the cost, probably significantly, because a controller otherwise rated for say, 72v 100A is now only good for at most 48v 80A (possibly less depending on other margins). If a 48v80A controller used to be say, $200, and the 72v100A was $400, now the 48v80A is $400, and the 72v100A might be $800. (not really extrapolated numbers, just statements to show the idea). Most of the stuff out there tends to be rated near the capabilities of the parts themselves in the usage they're put to. (you can't necessarily go by the single-component ratings, or just linearly add them together, etc, so a part that has 18 FETs each capable of 100A doesn't mean the controller is a 300A controller (18 / 2 halves of each phase bridge / 3 phases); if there are current spikes in a usage that is already at the spec limit, they could be damaged or fail).