Might be an idea to give up and shut down if the password is wrong, or at least use a much longer delay. It may be that 10 times per second is because of running multiple instances, but still if it is once per second it is pretty extreme.
Most pools do not follow the HTTP spec, so there is no way for DM to detect the difference between a malfunctioning pool and a malfunctioning user.
Plus, no one should EVER run multiple instances of DM.
If the user has added multiple pools, DM will just go to the next pool after a few failed attempts.