Yes and no. The white paper design is not intended to has a mechanism for an upper peg, but it is also assumed by the authors of the white paper that no such mechanism would be needed:
We fully expect there to be a narrow trading range between $0.99 and $1.01 for SMD under most market conditions.
This is clearly not the case, therefore the assumptions made by the authors of the white paper are proven incorrect, not only here, but also on Golos (Steem clone/fork) which has experienced similar or worse de-pegging. The mechanism is deficient to meet the stated (and reasonable) goals and needs to be revised.