The dampen difficult adjustment hack is probably not what you want to solve the difficult problem. (commit 7c649ebdbaf6fa378a9c25023d531986e1745484 @ github)
There is a reason bitcoin adjusts after a number of blocks, the time between two single blocks is not a very reliable indicator of network strength.
There should be one block every minute and hours went by again without one. Right now, the network will never compensate for that. There could always be an unlucky sequence of two blocks being very close after each other (just some miliseconds) and difficulty would shoot to the moon. Damping it 10x is still a very naive way of solving this improbable but very much possible outcome and eventually the blockchain will still get stuck like it has now.
Do it as bitcoin does it, adjust after a number of blocks. Have some kind of moving average over the last n blocks, as all alt-coins do it that adjust every block. Don't just base the difficulty equation on the difference of two single blocks alone, that is just asking for trouble.