What happens in the case of insufficient funds for a market order buy of multiple shares, due to a slight price rise?

Let's say each share is $1, and there's $10 available to trade in someone's brokerage account. And we just ignore any fees for the example.

While the market is closed, the investor does a market order for 10 shares, which would be all the reminaing amount in their account.

The price of the stock goes up before the trade is executed though. Which of these 2 things happen?

1) The entire order is cancelled

2) Maybe 9 shares instead of 10 are bought, and the final one is cancelled