This reminds me of delay line memory, storing information in the echo of a sound: https://en.wikipedia.org/wiki/Delay_line_memory . LEO had long tubes of mercury for this, not sure I would have wanted to work in that office.
My gut feeling says that only geostationary satellite links have any significant number of bits in-flight.
e.g. if a 5000 km long link at 10 Gbit/s has latency of 0.0166 s, then you have zero buffering. If you have latency of 0.2 s, then around 2 Gbit of data must be stored in buffers somewhere, making 20 MB in flight only 1% of all data stored in such a ping filesystem.
EDIT: For the EME path that's around 3 gigs in flight
I'm not familiar with the overall architecture, though, unfortunately. I do remember having to do a most-significant-bit first, bit-serial, two's complement adder as a homework assignment that was inspire by the machine.