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Chris M. said:
From what I can tell, and please correct me if I`m wrong:
The regulator is in the top of the body next to the head. The regulator part feeds the lamp while the LEDs have a simpler resistored drive method. Both share a common ground, and are always connected to the electronics when the head is on. The 2-stage tail cap contains a resistor, which is connected in circuit when pressed only partially. This completes the circuit but limits the voltage avaliable to the reguator, meaning it will not switch on. The LEDs do however, since they bypass the regulator. Press the tail cap harder and the resistor inside is shorted out allowing the full battery voltage to pass to the regulator circuit. Now having enough voltage, it switches on, but the LEDs remain on too (just get a little bit brighter). When the battery voltage runs down to the point where the regulator cannot sustain the output any more, it shuts off, but the LEDs remain as they do in low-power mode until the power gives out completely.
Sounds complicated, but is a very innovative and surprisingly simple engineering solution to a potentially complex problem. Assuming I got it right that is.
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... yea, that too.