As I understand it, TMO does not modify the stock SH4 "hit points" sinking model. It sure looks that way, based on sinking mechanics I've observed in my war career (played entirely under TMO 2.0).
If you want a more realistic sinking model, you probably should try Real Fleet Boat. Its "flooding"-based model is well explained in the RFB manual. That's my next stop. I've nearly finished the war with my current sub captain, and plan to restart the war with RFB.
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Windows 10 Pro (x64)
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