I think I may have crossed into level 2 and now am completely locked out of my funds as my xapo account won't log in but instead just errors out. A real pain when I pretty much use it as a hot wallet for funds
~snip~
I can't be sure because I never touched that limit, so I don't know what notification will appear when they asked for second verification, but from what I imagine from
koshabt and
ogv, aren't the notification (for second verification) supposed to sounds like asking for another verification instead of showing such warning like your screenshot? Furthermore, have you tried to ask them what causing the error by sending them an email consisting the error code as they suggested? Maybe (hopefully) they'll reply with a simple solution.