You should leave out the domain http://example.com in ProxyPass and ProxyPassReverse and leave it as /. Additionally, you need to leave the / at the end of example/ to where it is redirecting. Also, I had some trouble with http://example.com vs. http://www.example.com – only the www worked until I made the ServerName www.example.com, and the ServerAlias example.com. Give the following a go.
<VirtualHost *:80>
ProxyPreserveHost On
ProxyRequests Off
ServerName www.example.com
ServerAlias example.com
ProxyPass / http://localhost:8080/example/
ProxyPassReverse / http://localhost:8080/example/
</VirtualHost>
After you make these changes, add the needed modules and restart apache
sudo a2enmod proxy && sudo a2enmod proxy_http && sudo service apache2 restart