My suspicion is that the finished material was compromised through the creation process. I've always been somewhat suspicious of any commercially available/manufactured Damascus and/or laminated steels. Why? First, whomever produces it, are always super secretive about the process..... telling only enough to make less knowledgeable people go... "Ohhhhh!" "Ahhhh!", but always leaving portions of the process to speculation. Where as some would get sucked in by that..... for me, it throws up a red flag for me.
Next, you don't do this as long as I have, and not have some "inside" tracks. And some of mine have enlightened me that this specific material is simply not "up to snuff", due to the process use to make it. Remember how I'm always talking about the "give-n-take" we deal with in knifemaking? In this case, according to my sources, it would seem that in order to be profitable in making/selling this particular material, certain "shortcuts" were/are taken that leaves the finished product in a less then desirable state for blades. In other words, to put it plainly, this is one of those materials that is all show, and no go. Depending instead, on the "Wow Factor" to have people buy and use it.
All that being said, I have personally used, or more accurately, TRIED to use this material to produce blades. After going through several pieces, all with the same, and similar results to you (Jesse), my conclusion is just what I said earlier..... all show, no go. The core is (the "white paper 2" steel) is plain as plain carbon steel gets..... in the 1% carbon area, with .25% manganese, and usually a trace of Silicon. Coring that with mild steel laminates isn't a bright idea to begin with, especially with such a thin core, there isn't going to be much strength there if laminated under ideal conditions. Factor in taking "shortcuts" when laminating it to maintain profitability.....These days, there is a TON of that kind of stuff out there, and it is certainly a "buyer beware" jungle.