The sponsoring account balance can go negative by a few clicks worth of GPs. The system checks every few minutes to see if the balance is too low to allow the sponsoring. Depending on what placement the sponsored item/link has, it may get clicks just before it's turned off. This is obviously more likely to occur to a #1 bid ... and much less likely to occur to a #10 bid.
It is definitely not a rampant problem, nor does it ever amount to very much in the negative...
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