ok I think I understand what you are saying.
The sentiment, if the price was stable, would likely change for the better (less panic dumps, and dragon chasing pumps), but we are still applying the trades with the worst case sentiment.
So, if we are stabilizing with the worst case sentiment, that sentiment is now irrational compared to the price, and it's harder to stabilize a price when the trades are being made irrationally. That then should imply that the model is able to handle very extreme situations.
if there were more stability in bitcoin within your exchange.. then there would be less people playing with them in your exchange as a day trading platform
although a usable currency stability outside of exchanges is good. but on exchange stability/stagnancy of prices are not good. it would effect peoples decision to hoard large sums on exchanges because there is no need to daytrade.(altering your supply buffer)
thus even in a stable exchange. your supply buffer would not be the same. and because there is lack of supply. people can abuse that. by arbitraging. and only using your exchange as a temporary 'flip'
If the price being more stable means there are less people trading, then the buffer would have MORE resources and not less, because less trades are in the range where it needs to intervene, so it intervenes less.