18.2.e is interesting, did we talk about that?

Situation:

Crowded 'C' mark rounding (no gate) starboard boat is on the layline and let's say four boats all on port setting up to pinwheel around the mark. According to 18.2.e the starboard tack/inside boat may not be entitled to room because "from the time the overlap began, the outside boat has been unable to give mark-room, she is not required to give it"

I'm also assuming the "outside" boat to the starboard tacker is the inside boat of the port pinwheel. In order to give starboard/inside boat room the "outside" (inside of the port pinwheel) boat would need get room from its outside boat and on down the chain. If it goes to the room it could be argued... I asked for room and didn't get it. So, starboard is hosed.

Anybody else read it the same way?