Yes, your PO2 rises on descent...and because pressure on descent is increasing, gas volume in your loop decreases, necessitating the addition of diluent to compensate. Therefore, even with a lean dil, the possibility of going hypoxic on descent is unlikely because you are constantly adding gas with more O2 even if it's a "lean dil" and even with O2 supply off (which is unlikely given additional info below).
I will add that I know the individual in question, having dived with him regularly for 20 years, 15 years of which was on CCR. And it was standard practice for us to only add O2 while on the surface preparing to dive. This was a standard practice as it was used as a backup check that our O2 was on while pre-breathing and checking cell integrity, etc. Therefore, the loop PO2 on the surface upon splashing in would typically have been around 0.60-0.80. Using 10/50 trimix as diluent would also be typical. While considered a "lean dil", I am sure folks can work out the math to determine the shallow depth straight 10/50 would support life for an extended period of time.
I will also add that the incident occurred in the water column, at around 160 fsw and before reaching the wreck, and at around 2 minutes into the dive.
While not ruling out hypoxia, I wouldn't be looking at it as a primary, secondary, or even tertiary scenario given the above.