One of the largest AWS outages to date was caused by a scenario like this. [1] A mistyped commanded removed too many servers from an S3 subsystem, overloading the remaining servers and crashing the subsystem. The failure snowballed until the entire S3 region was down, which then caused issues with dependent services like EBS, ALB, and Lambda. They couldn't even update the status page because that also depended on S3.
I remember that. The AWS dashboard was all green checkmarks... because the red checkmarks icons the dashboard was supposed to display were stored inside the crashed servers.
[1] https://aws.amazon.com/message/41926/