Yeah so Molholt confirmed that he was treated the same way as Olynick pretty much. Except instead of 12 TPE he was allowed to keep his donation and use the player store purchase later (which may have disappeared but that's a separate issue).
So to summarise:
1. If you are over 175 TPE before the VHLM season (including banked points), you can't play in the VHLM (with the exceptions of rare cases like Slaughter who had nowhere else to go). I'll re-post this rule in the updating forum but it has been there for long enough.
2. I am willing to make arrangements for players who want to stay down like Olsen and Olynick when it really is the best situation for them and both their VHL and VHLM teams. This involves forfeiting TC (for greater VHLM benefits) and reshuffling TPE. In Olynick's case, 12 TPE isn't that big of a deal.
3. I like d3vils' idea about carryover being used after people move on from the VHLM or at least after their pre-draft season. Maybe cap it at 28 (the most first-gens can earn with 3 doubles and VHLM TC). It's an interesting proposal which has been lost in the shuffle.
Overall, this thread wasn't necessary since we had already sorted everything out but on the bright side, it's clarified some issues and cost Olynick 10 VHL TC TPE because of the Olsen precedent.