Product talk: Lenz LZ100
Message on the LENZ mailing list by JAL:
The Ground terminal on the back of an LZV100 is not used for DCC signal transmission.
The Ground terminal and the R & S terminals on the back of your LZV100 are used only for the logic detection and feedback parts of your system (e.g., LR101s, LS100s , LB101s) if you are making use of those system capabilities..
The C & D terminals on the back of the LZV100 transmit DCC signal to other LV power units connected to a system (via the C & D terminals on those LV units).
The E terminal on the back of the LZV100 and LV100/101/102 (“booster”) units is there to transmit a power interrupt signal back to the Command part of the LZV100 when there is a short somewhere on the output (J & K terminals) side of an additional LV (power booster) unit wired into a system. (The short detection/shutdown is internal to the LZV100 for whatever blocks may be connected to its J&K terminals.)
I confess to not knowing the PSX well enough to offer any views on how may work.
It seems logical that, if you can get it to operate quickly enough to enable it to prevent a short signal getting through to the LZV100, then you should be able to accomplish what you appear to want to do. (I note that one of the other responders to your question appears to have succeeded in doing this.)
If the default PSX setting allows a electrical short signal to reach the LZV100’s internal short detection circuitry, then the LZV100 would operate exactly as you first described because it would be shutting itself down for all the blocks connected to its J & K terminals.