I had the same issue with my cheapy 4 position on my M4gery. Every shot would make it collapse one more.
As you figured out, if you remove the roll pin and 'unscrew' the nut a little, it makes the retainer pin move further into the buffer tube. I had to move mine so much that the roll pin wouldn't even go back in... so I just used a bit of wire and made it work like a roll pin.