Our budget is dumping at 3 AM but stalling during the day. Any advice for a beginner?

Hi everyone, we are a very new startup selling T-shirts on Shopify. We are stretching every single rupee of our budget to try and make this work, so we are looking for some community guidance.

A quick note: We truly value and respect the professional knowledge it takes to run successful ads. We know that expert advice usually costs money, but as a tiny startup, we honestly don't have anything left in the budget for consulting or audits right now. If you are willing to share some of your expertise with a stranger for free, we would be incredibly grateful and it would mean the world to us.

The Problem:

1. Midnight Spending Spikes: On a ₹500/day budget, my new ad sets burned ₹715 and ₹450 between Midnight and 8:00 AM (India time) two days in a row with zero results.
2. The Shift: To stop the "dumping," I stopped the new ad sets and moved the ads into an older, more stable ad set.
3. Current Stalled Spend: Since moving them, the spend is stuck. It has spent only ₹0.07 since midnight despite the ads being "Active."

Current Setup & Troubleshooting Done:

• Daily Budget: Increased to ₹600 to try and "nudge" the algorithm.
• Prepaid Balance: Just topped up to ₹1,606 to ensure there’s no "low balance" throttling.
• Account Limits: Confirmed no Account Spending Limit is blocking delivery.
• Automated Rules: I have rules set to pause ads at night if they spend ₹100 without a sale, and wake them up at 7 AM.

Questions:

• Why does Meta dump budget at 3 AM on a new account but refuse to spend during high-traffic daytime hours?
• Does moving ads to a different ad set "reset" them so deeply that they stay at zero spend for 10+ hours?
• Is there a way to force the "Auction" to recognize the ads during the day without constantly toggling them?

God bless anyone who can provide some insight. We really need to get this traffic moving during the day instead of burning it while we sleep. Thank you!