From what I can tell (these are just obervations), the deeper you go, you can use a little more engine power without being killed. This doesn't mean you aren't detected. When you go deep, the water is cooler than the surface, this causes refrection and distortion of the soundwaves (due to the difference in densities). What the DD will "see" is your u-boat behind where it actually is. This is often used in modern warfare (not implemented in the game) but instead of diving specific depths (ie meters) you dive in temperatures (ie deg C). These are called thermals.
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