I am not too familiar with kegerator regulators, but it sounds like the valve that controls the CO2 let out is slipping (hence the fluctuating CO2 levels, yellow drop checker, and dead fish). My control valve is like a screw. It is pretty tight and doesn't slip. Here is a picture of it:
http://www.drsfostersmith.com/product/prod_display.cfm?c=3578+3747+9895&pcatid=9895
See the little screw at the bottom? Maybe that part on your device is different/ less effective.
Also, the age of the bottle shouldn't matter, so long as it passes the hydrostatic test every five years, it should be good. Every five years is the law in my state, but it could be different where you are.
A couple weeks ago, I would have to adjust the regulator to get my desired bps, but by the end of the day it would slowly dwindle to about 1 bps. I couldn't figure it out so I started messing around with all the knobs. It turns out I hadn't opened the CO2 cylinder very much at all ( I turned it off a couple weeks ago and forgot all about it). When I opened the cylinder (using the wheel attached to the cylinder), my tank had a huge bubble surge. lol it wasn't my regulator settings at all, it was the fact that my cylinder wasn't opened.
So if you cranked open the cylinder a bit before you went to bed that could be it, but my guess is you have a defective valve.
Note: I am assuming that you turn your lights on for your
plants before you go to bed. If you turn them off and still have the CO2 running all night long you are wasting A LOT of CO2. Your plants are only gonna use a tiny but of CO2 w/o the lights, so if you have lights off and Co2 being injected, you are just pumping your tank full of gas that is toxoc for your fish. It is okay with the lights on because the plants are photosynthesizing and consuming the CO2, but during lights off, they aren't using it really at all.