The white paper also says this:

We fully expect there to be a narrow trading range between $0.99 and $1.01 for SMD under most market conditions

The white paper got this wrong. They did not think that an upper peg would be needed (other than perhaps very occasionally). They were also wrong that there isn't much you can do when there are too many crazy people, as shown by other pegged coins on the market that deal with this situation a lot better because they have mechanisms to increase supply. They still have pumps, but the pumps are short-lived and do not disrupt the token value for months as they do here.