Overmodulated JT65 on HF?

Sometimes it is crowded on JT65 on HF due to too little bandwidth. When only 2 kHz is available and each signal needs 175 Hz that's understandable. But then others seem to complain that some overmodulate their transmitters so that they occupy more than the 175 Hz, making it even harder to fit an extra signal in the band.

As I have been running a lot of JT65 lately on HF, I also have seen this phenomenon and it piqued my interest to try to understand what was going on. The image below shows such a strong station to the very left, at about -1000 Hz where the red marker is located. After some seconds I turned on the attenuator of my K3, so the signal was attenuated by 10 dB (press image for zoom).

What one can see is that what appears initially (at the bottom of the waterfall) as a splattering signal, becomes quite fine when the attenuator is turned on. Then it spills into neighboring frequencies again as the attenuator is turned off again.

It appears then that it is the JT65 decoder software which is too sensitive to strong signals. Now, I cannot really say that I understand all of the decoder code, but I think that it has to do with the way the power spectrum is estimated. The FORTRAN code for ps.f is listed below. It comes from the BerliOS repository for WSJT which has the same code for this routine as JT65-HF-Comfort: