I have exactly the same problem, do not increase the level of points, is this such a joke from the developers?!

I am having the same issue.  Here's what I've had going on all day today.  

None of my points for racking up, ascending or leveling my characters has counted toward the event... all points are only going toward the tournament. I have racked up 2 characters... then leveled them to 24 and ascended a different hero from none to 3 stars but nothing counts toward the event. I am at 3518 points and those upgrades would have put me over 3600 so I could collect the Sacred shard... which was my goal.

Same Problem with the Messange points here Top...

Hi

I play every day. For several hours a day. Are you seriously telling me that the cap was designed to alow no one to be able to complete the event!?!?!  If the event had a cap then i hit that cap every day! Because every day i was denied all my points that i earned. Perhaps you should let everyone know that there is a cap in the beginning of the event description.

cardo1491 said:

I play every day. For several hours a day. Are you seriously telling me that the cap was designed to alow no one to be able to complete the event!?!?!  If the event had a cap then i hit that cap every day! Because every day i was denied all my points that i earned. Perhaps you should let everyone know that there is a cap in the beginning of the event description.

Hi