It is an award, so it books into O and not into a revenue bucket. But what is the problem with that? M&M usually has good O availability.
Since when does US charge 240k for a flight to Europe?
The three region award can be a nice feature when you want to do three regions, have extra stopovers etc.
But it can be a curse when you just want to go from A to B but because there is no *A flight you have to connected somewhere else.