You probably know this, but it is worth repeating.
http://www.hdcd.com/partners/proaudio/m ... ating16bit
Peak Extension
Peak Extension is a restorable (with HDCD decoding) soft peak limiter that allows peak levels of up to 6 dB above standard full scale peak level (+6 dBfs) on 16-bit HDCD-encoded recordings without generating "overs." The limiter has a carefully crafted "easy over" curve, designed to mimic the sound of analog tape saturation, which operates over an input signal level range of -3 dBfs to +6 dBfs. This squeezes the top 9 dB of the input signal's range into the top 3 dB of the 16-bit recording.
During HDCD-decoded playback, the peak limiting is undone by the HDCD decoder chip using a precisely mapped inverse of the limiting curve controlled by a hidden code. The dynamics of the original material are restored up to +6 dBfs, thus extending dynamic range by up to 6 dB. During undecoded playback, the effect of Peak Extension is that of a very high-quality standard limiter. Use of Peak Extension is optional in the 16-bit HDCD encoding process.
What I find interesting is that they describe the peak extension method as an invertible compression. In other words, it works like a compressor, squeezing the top 9db of the recording into the top 3db, but with the lost information stored in those least significant bits. There should be no clipped peaks on the .wav, if I understand this correctly.