19.2(c) clarification

   I've recently started sailing in a new fleet, a very well established fleet with excellent sailors.  Recently I came across a situation where the behaviour of the whole fleet with respect to rule 19 differed from my interpretation of it, and as a newbie to the class I thought it best to check my understanding before I say anything.
Situation is that boats are running along a continuing obstruction against a strong current.  The advantage is to be hard against the obstruction so the fleet is basically in line astern.  As each boat blankets the one in front there is a lot of catching the boat in front going on.  Most boats are sailing considerably less than 1 boat width from the obstruction.  
What was happening was the boat behind was getting it's bow just overlapped between the stern of the boat in front, at a distance of inches, and the obstruction and then instantly demanding room to sail between the boat in front and the obstruction.  This was being given.

19.2(c) says
"While boats are passing a continuing obstruction, if a boat that
was clear astern and required to keep clear becomes
overlapped between the other boat and the obstruction and, at
the moment the overlap begins, there is not room for her to
pass between them, she is not entitled to room under rule
19.2(b). While the boats remain overlapped, she shall keep
clear and rules 10 and 11 do not apply"

To me that means that since there was not at least a boat width between the obstruction and the leading boat when the boat behind obtained its overlap that room should not be called for or taken.  So in other words if you are sailing less than 1 boat width from the obstruction at all times you are safe from being passed between you and the obstruction.

Am I right? 