Bulls are smart enough not to dump Steem Dollars or to use their steem dollars to bid up the Steem Dollar / Steem market.

As a steem bull wanting to convert into Steem Power I would find the cheapest route to be the auto-conversion to Steem at the price feed. The internal market will bid up the liquid steem / steem dollar price due to a large amount of buy pressure. This means that even though 500k steem dollars is created, much of it will be converted to Steem Power leaving much less sell pressure.

The stupidest move any speculator could make would be to dump their Steem Dollars for less than a dollar when they can wait it out and get almost a full dollars worth. Others who are more patient will be providing liquidity.