I also have the same issue. I was working on my team yesterday for hoenn's e4 and only managed to get half of my team to lvl 59 since I wasn't sure if overleveling could happen or not. The new update dropped the level and now I'm suffering horribly with half of a team that's prepared to take on the e4. I'm seriously wondering what was the purpose of the sudden decrease in the level cap across all regions?