bmerry won the last Div2-Only contest with a big margin, even after including the out of competition coders, and it was his first contest. He is still in Div2, I think if someone got a very good rank in his first contest, his new rate should be in Div1, like in TopCoder you jump directly to yellow.
Edit: And now just +79 for winning Div2 again!
what's interesting, administration still don't comment this situation...
Yes, now it's harder to move to div1.
Strange system... he won div2 contest twice and just purple...
Clearly bmerry is an outlier. I don't think questioning the rating formula for this particular case is fair. I also don't see how this affects anyone except for him playing twice in div2.
What could be questionable is that div2 is has more than double the amount of participants than div1. But given that less than 40 participants got more than 2 AC in Div1, I think it's well balanced as it is.
I wonder how many color changes are there per round.