It can't mitigate them entirely.

In the event of a large run/rally, it will only be able to settle 10% or so....after that the price is in freefall/moon mode.  This is fair enough though, as it is not meant to stifle real free market activity, and if the free market wants a dump/pump, then so be it.

Other edge cases could be that a few whales together try and dump/pump the price, and while not successful, the buffer ends up on the lean side.  Should another pump/dump of sufficient volume follow shortly after before new funds can make their way to the buffer, you'll get some volatility.

10% or so should be more than enough to cover a succession of these events and provide at least a smoother ride than cryptos atm.

Of course, as the user base grows, and as our target user base is mass market, you'll see the price stabilize itself as the ratio of manipulators:genuine users contrasts.  The majority of the currency will not be in the hands of manipulators due to the distribution models, so the buffer should be less and less required.