The debt ceiling really doesn't matter in the case of HBD. It could be set at 1%, and the problem would be the same, if not worse.

No, it would be completely different because no matter how far the price dropped and how much HBD were created at the top, only an additional 1% HIVE would be created even if 100% were converted entirely after the dump. This would be better, in a way, but it would be worse since there would be less deflationary effect in a rising market too (and also less ability to benefit from natural demand for the HBD "product").