Case fault geometry is basically the difference in relative depth between the diaphragm and exhaust valve; if the pressure differences are enough, exhaust valve will essentially open at a pressure low enough to not allow enough pressure to stay in the reg body to keep the diaphragm from collapsing a bit and opening the lever. Since pressure differences between a set distance (about an inch in this case) are greatest at shallow depths, you'd expect this to happen shallow, but not deep. My guess is that with increased flow at greater depth, there's an increase in venturi effect and that's what causes the slight flow. That's a guess, though.