Everytime I'm doing mega speed the game auto resets me 120 degrees to the left of my original path, is there an actual speed limit in this game?

There is a limit at around 200 m/s (720 km/h) where the game stops you from going any faster. Don't remember the actual reason for it, something relevant to either safety, hacks (in pre-mod era this speed was simply not possible to achieve naturally) or maybe the physics code stops working properly at so high speeds (after all at that speed you are getting out of the general subsonic aerodynamics territory and the code might not work at all nearing the transsonic speeds).

It shouldn't be possible to do 200 m/s in game, unless you've crashed and bounced off a wall and are now tumbling. The game resets the car at that point because you are most likely no longer in control of the car at this point under normal conditions.

I endorse this limitation.