Sorry to hear about the problem with the email. Unfortunately, there has always been a limit to the number of people you could send the email to (CC, BCC or TO fields) and it is set to 50. We have an article called Recipient Limit for Emails that explains it in detail. The article also provides a link to PHPlist which can be used for large email lists.
I would also suggest using MailChimp as a third party solution for sending out updates/newsletters. This a particularly great solution as it's free for the first 2000 subscribers who would be receiving the emails. This also removes the resource load that would normally affect the hosting server.
I hope this helps to provide a good solution for you. Apologies again that we can't provide a way to send the email to more than 50 people at once. Please let us know if you require any further assistance.
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