ICANN has an Expired Registration Recovery Policy (ERRP) that requires your registrar to give your domain a 30-day grace period before deleting the records. ERRP also requires them to shutdown your DNS resolutions 8 days before deletion.
You’d have to be really mismanaging your domain if you miss all the required email reminders and don’t notice your domain has been non functional for a couple of days.
Yup. Microsoft let hotmail lapse once. Someone paid for the renewal for them. https://slashdot.org/story/00/01/18/1645224/microsoft-hotmail-domain-reward-check-on-ebay
Yeah some dude bought the google.com domain via some glitch a while back. Here’s a story about it.