As follows from the general trend - average damage fluctuates within 1/2-1/5 of a unit's HP, meaning that after a retaliation strike, the stack strength will decrease by an averaged mean value :) 1/3.5, i.e., around 30%, and thus the second hit will be delivered with 0.6-0.7 of the original strength.
2. Regarding the 1.75 coefficient for the double strike, I take your side... We've sorted it out, so to speak... Everything is correct.