Latest updates are at the bottom of the post
While some people have complained about the balloon providing too much to players the game has seized to spawn them after 300 pops. But it’s not intentional it is a glitch. Past 2 days have seen a lot of players running around the balloons that float around the island with gifts and that is because of “It’s Raining Treasure” achievement. It’s a Nook Miles achievement and when you reach the goal of 300 the balloons just stop appearing altogether.
The glitch was first reported on Reddit and has an extensive post for it here. Now even if you do not accept the Nook Miles achievement, the balloons would still seize to appear. So if you are thinking of not claiming the award, it doesn’t help. So players have already reported the bug as told on Reddit and the developer team has acknowledged its existence. But the problem with the glitch is the fact that it hinders progress with the on-going bunny event and upcoming cherry blossom event where you desperately need those balloon gifts. The bunny day event is all about collecting eggs then using them in recipes and you get sky eggs by shooting down those balloons. If the glitch is not fixed there will be a major upset to all the recipes that do require the sky eggs.
Now if you have not run into the bug yet, there is a workaround of sorts. You can use another Nintendo Switch profile and make a secondary character to use it to collect another 300 balloon gifts. Since the glitch is tied to the Nook Miles achievement, the secondary profile/character will be able to collect those balloons. Then using the ‘Call Resident’ feature as soon as you have a new island setup, you can use the secondary character to collect the balloon gifts while the main character keeps them. Some players have said that the secondary character doesn’t even encounter the glitch so you can pop more than 300 balloons. We know this is not the island solution but we expect Nintendo to dish out another patch update and fix this as 1.1.2 did not fix it.
Glitch fixed in the latest update 1.1.3