It's called arcing, It's not a big deal, in fact it should be expected...1 ohm coil, 4.2V fresh batt, when you press the button down and make contact with the battery, you've just made a connection where 4A+ (the initial surge notwithstanding) is instantly flowing
through a coil. The button press arc is caused by any microscopic crud on the contact (left from he last time you pressed/released the button) and the arc when you let go of the button comes from the coil's (inductor) magnetic field collapsing, backfeeding and attempting to keep the current flowing. It's just the simple laws of physics at play here...blame Michael Faraday
Noalox isn't stopping the arcing, it's simply hiding it, it's still happening (at least the arc from letting go of the button)...the only way Rob could possibly minimize his mechs from arcing would be to somehow incorporate what's known as a fly-back-diode into the circuit (or somehow shroud the batt top/contact from view)...every tube mech does this as well, it's just never been an issue cause peeps can't see it
edit: I really shouldn't just say mechs...any enclosed switch on any
mod also arcs which is why switches eventually wear out, the contacts pit from arcing...you'd be shocked to see what goes on inside the light switches of your home...especially if that switch turns a motor on/off...
now that I've freaked everybody out...