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This siphon effect relies on atmospheric pressure to allow the pressure and pressure potential energy to drop as the water travels upward inside the sealed pipe. But eventually the pressure of the rising water reaches zero and no further reductions in pressure and pressure potential energy are possible.
Hydrostatic pressure pushes the water up through any cracks or pores in the concrete. Once the water has an easier route to take (drainage pipes) it should relieve the hydrostatic pressure and stop coming up through the basement floor. This method works good for houses that can't give up 4 1/2 inches of head room.