When I set up the payout table like that myself it tells me the max bet is around 9k bits, so I don't understand why this bet was allowed to go ahead.

That's definitely a huge underestimate. The max bet should be considerably larger.
Although, I'm quite surprised it would allow 0.4 BTC bet -- that seems a bit much to me. By any chance, did the owners of MoneyPot.com change the bankroll risk to a 10x kelly?
If anyone wants a worked example of figuring out the max bet for a normal kelly the maths is this:
http://math.stackexchange.com/questions/662104/kelly-criterion-with-more-than-two-outcomesIf no one else does it, i'll go through it for that bet and see what it should be