Hi @grajee ,
Welcome to Microsoft Q&A Platform.
The Max metrics referred above are maximum available QPU/Memory and hence does not indicate load on the server. The Max size reflects the Total memory limit. The Hard Memory Limit is always equal to the SKU size (e.g. 10 GB for the S0). Please check this link for some information on the differences. The spikes of memory above Total memory limit would start to trigger high priority cleaning of memory and cause older inactive sessions to be cancelled. Beyond the Hard Memory Limit, the priority bumps up even further, and even active operations and active sessions can get cancelled. DMV's can be used to track the impact for performance, please refer this link for other options.