[Elecraft] k2 squelching on very loud signals

[Jerry Bliss]

I operated in the NAQP SSB contest Saturday for a few hours with my K2
s/n 500.
Made some 99 contacts running 4.7w, and received many very complementary
reports.
I was using the Heil BM-10c head set boom mic.

I noted that in the presence of a very strong signal (like a BC carrier
or loud local station) and crowded band conditions, on several instances,
the receive audio would completely shut off.... like the opposite of a
squelch function. Sometimes this 'squelch' would pump... poking the
Attenuator ON or turning down the RF Gain seemed to have little affect in
defeating this problem. AGC was ON and SLOW or FAST made no difference.
This affect appeared on the all the bands I was using (20/40). I did not
observe the action of the S-Meter during the time of the 'squelch'
condition.

I recycled the power and the problem persisted. 

Sunday evening, I was tuning 40m SSB and do not see the affect and in the
presence of several S9 signals (as seen on the S-meter) on the band, the
problem was not seen.

Software is 2.01f

Anyone else see this affect or can suggest the cause.

73 de Jerry/k6iii
San Jose, CA