In cases like these, someone loads up a huge botnet, a downloaded list of hacked usernames and passwords, and tries every single combination hoping to find a reused username/password combination.
In these cases, it is almost always extremely targeted. Log correlation has helped quite a bit, but it is still very painful since they alternate IPs with every request.
Automatically adding a blanket ReCAPTCHA on all login pages during a distributed brute force attempt is one of the few things that actually stops an attacker like this with minimal negative consequences.
I'm sure it is frustrating to users, but I think service disruption from what is effectively a DDoS is a worse user experience.