Ed,
At least for USSSA and Super Series, which do have rules concerning time limits, there is no rule against this. And as I read the situation, the home team was behind or tied, had a great start to their half of the inning, and yet they chose to make outs. Sounds like they wanted to play one more inning of baseball, and the umpire didn't. That's poor customer service, considering the time limit hadn't expired.
Perhaps you confused this situation with one in which a team loses the game intentionally in order to gain an advantage during the rest of a tournament? There are rules against that.
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