I sent paul an email asking about DOMS.
His reply.
I don't know what DOMS is or is not doing. I also do not know if the holder of convertible is using DOMS or not. What I can tell you is that when a conversion notice is sent in, we send out the stock as per the agreement, and then the convertible holder sells the shares. If there are more sellers than buyers, then the stock retreats, but appears to return once the selling has subsided.
That seem to be whats happening alright.
He is no fool who gives what he cannot keep to gain what he cannot lose.