Interesting... I could never go that fast without h/w flow control... Linux wouldn't drop characters, but it would overrun the T's receive buffer because it didn't react immediately to xoff. I don't know why... my theory was maybe the driver doesn't see the xoff until it popped out of the stream. Maybe screen in the middle processes the xoff sooner. All I had in the loop was getty or equivalent.
Between that and ANSI escapes from xterm and utf8 and whatnot full screen console stuff was always messed up without HTERM to filter and flow control. -- John.