Going into it in a little more detail, here is how the THC operation is described in the Mach2 manual (italics):
1.
The part program moves the torch at Safe Z to the start of the cut then moves to Z = 0 (This is pierce height).
2.
It then executes M3 ("spindle start") to start the arc. Mach2Mill stops executing the part program and completes the torch switch circuit. Piercing starts. 3.
When the THC interface detects that the arc is good it signals this to Mach2Mill which switches on the torch height servo and resumes execution of the part
program. This can have a short Dwell (G4) or immediately commence the first move for the cut.4.
Whenever the height servo is on it will sample the Torch Up and Torch Down inputs. If Torch Up is active then the Z axis will move in the plus direction at the rapid
feed rate multiplied by the Correction Speed percentage DRO. Similarly Torch Down will move in the minus Z direction.The way it's worded sounds to me like as soon as the ARC OK is recieved, the THC will respond to the UP/DOWN signals. My plasma cutter puts the ARC OK signal out very quickly after the TORCH ON signal is given, so I can see the THC reacting in the middle of a pierce when the voltage is sky high, and driving the Z down while piercing.
Have I got any of that wrong

Keith.