the formula part does kind of confuse me a bit though. I am guessing almost no one investing has actually done the math on that formula as in depth as he has(I ceertainly haven't, just like he says, I scroll through that part of the whitepaper and trust the MNX math wizards have something in there), and if what he says about the formula is true, that is a little disconcerting.
He shouldn't change just market cap value. He should change also other parameters for the same coin accordingly (coin price in usd and btc,...).
Correct, this was his mistake. He speculated solely on market cap assuming the price was constant. But this assumption is wrong. Market cap and the coin price are tangled.