diff --git a/packages/cli/package.json b/packages/cli/package.json
index 563d703e2..9831bafae 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@openrouter/spawn",
-  "version": "0.27.4",
+  "version": "0.27.5",
   "type": "module",
   "bin": {
     "spawn": "cli.js"
diff --git a/packages/cli/src/digitalocean/digitalocean.ts b/packages/cli/src/digitalocean/digitalocean.ts
index b0d79a154..638114b99 100644
--- a/packages/cli/src/digitalocean/digitalocean.ts
+++ b/packages/cli/src/digitalocean/digitalocean.ts
@@ -449,7 +449,9 @@ export async function checkAccountStatus(): Promise<void> {
       if (existingDroplets.ok) {
         const currentCount = existingDroplets.data.length;
         if (currentCount >= dropletLimit) {
-          const msg = `DigitalOcean droplet limit reached: ${currentCount}/${dropletLimit} droplets in use. Delete existing droplets or request a limit increase at https://cloud.digitalocean.com/account/team/droplet_limit_increase`;
+          // List existing droplet names to help operators identify which to delete
+          const dropletNames = existingDroplets.data.map((d) => (isString(d.name) ? d.name : "unknown")).join(", ");
+          const msg = `DigitalOcean droplet limit reached: ${currentCount}/${dropletLimit} droplets in use. Existing: [${dropletNames}]. Delete existing droplets at ${DO_DASHBOARD_URL} or request a limit increase at https://cloud.digitalocean.com/account/team/droplet_limit_increase`;
           logWarn(msg);
           if (process.env.SPAWN_NON_INTERACTIVE === "1") {
             throw new Error(msg);
diff --git a/sh/e2e/e2e.sh b/sh/e2e/e2e.sh
index a788a2c2a..76bc8d5e7 100755
--- a/sh/e2e/e2e.sh
+++ b/sh/e2e/e2e.sh
@@ -379,6 +379,21 @@ run_agents_for_cloud() {
     fi
   fi
 
+  # Bail out early if the cloud reports zero capacity (e.g. droplet limit reached).
+  # All agents would fail anyway — skip with an actionable error instead of wasting
+  # time on retries that cannot succeed. (#3059)
+  if [ "${effective_parallel}" -eq 0 ] && [ "${SEQUENTIAL_MODE}" -eq 0 ]; then
+    log_err "No capacity available on ${cloud} — all ${cloud} agents will be marked as failed."
+    log_err "Delete existing instances or request a limit increase, then re-run."
+    for agent in ${AGENTS_TO_TEST}; do
+      printf 'fail' > "${log_dir}/${cloud}-${agent}.result"
+      if [ -z "${cloud_failed}" ]; then cloud_failed="${agent}"; else cloud_failed="${cloud_failed} ${agent}"; fi
+    done
+    printf '%s %s %s %s %s' "0" "$(printf '%s\n' "${AGENTS_TO_TEST}" | wc -w | tr -d ' ')" "0s" "" "|${cloud_failed}" \
+      > "${log_dir}/${cloud}.summary"
+    return 1
+  fi
+
   if [ "${effective_parallel}" -gt 0 ] && [ "${SEQUENTIAL_MODE}" -eq 0 ]; then
     # Parallel mode: batch agents
     log_info "Running agents in parallel (batch size: ${effective_parallel})"
diff --git a/sh/e2e/lib/clouds/digitalocean.sh b/sh/e2e/lib/clouds/digitalocean.sh
index eba4cd073..0f0589dc3 100644
--- a/sh/e2e/lib/clouds/digitalocean.sh
+++ b/sh/e2e/lib/clouds/digitalocean.sh
@@ -366,6 +366,7 @@ EOF
 # Queries the DigitalOcean account to determine available droplet capacity.
 # Subtracts non-e2e droplets from the account limit so parallel test runs
 # don't fail due to pre-existing droplets consuming quota slots.
+# Returns 0 when no capacity is available so the caller can skip the cloud.
 # Falls back to 3 if the API is unavailable.
 # ---------------------------------------------------------------------------
 _digitalocean_max_parallel() {
@@ -375,7 +376,8 @@ _digitalocean_max_parallel() {
   _existing=$(_do_curl_auth -sf "${_DO_API}/droplets?per_page=200" 2>/dev/null | grep -o '"id":[0-9]*' | wc -l | tr -d ' ') || { printf '3'; return 0; }
   _available=$(( _limit - _existing ))
   if [ "${_available}" -lt 1 ]; then
-    printf '1'
+    log_warn "DigitalOcean droplet limit reached: ${_existing}/${_limit} droplets in use (0 available)"
+    printf '0'
   else
     printf '%d' "${_available}"
   fi