...Due to the constant rolling, balancing of equipment, and my observation of extreme agitation, I decided to take a break at the surface with my buddy and allow him to relax so we didn't need to call the dive. He kept on fighting with his gear and I did not see any sign of him calming down so I was about to call the dive when suddenly I noticed that his automatic surface sausage inflated. That really caused more anger and then put him into a near panic state due to the stress which then caused his mask strap to break off of his head and sink. The gear he had in his right pocket was one large and one small flashlight, his compass which was needed, a surface sausage, and a large dive knife. In his opposite pocket, he had a pair of 5mm gloves which he had not put on yet which were very buoyant.
I kept my distance and talked him down from panic and told him that we were not going to dive now and it was ok for us to just relax and figure out a better way to fix what was going on.
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Well, I would say that regardless of the "unbalanced" problem being real or imagined, you did good to notice the escalating agitation and recommending a break to try and sort things out. The auto inflate SMB does not sound like a very good idea at all. Not having seen one, what happens if he accidentally inflates it underwater? Is it easy to deflate and re-stow without much fuss or help?