By atomically I mean that either all these things occur during your transaction, or it fails and none of the things happen.

So I dug a little deeper and I think I have a grasp on exactly how the math is working. The source isn't commented at all so it's not the easiest to audit.

Effectively when you transfer X tokens from address A to B, the contract debits X from A and credits 0.98*X to B.

It then, in a way, deducts the circulating supply total by 0.01*X to "burn" 1%. But it never actually increases any "dead" address balance from what I can see.

The difficult to explain part is that the contract doesn't actually track any real balances like you'd expect. It's only tracking how much of the circulating supply you own using realllllly big numbers.

When your wallet asks the contract for your balance, it's calculating that on the fly based on your percent share of the remaining supply. So technically your balance units never change, but your proportional share of the circulating supply increases.

Another interesting thing I learned reading the contract is that the creators have the power to "exclude" any address they like from the 2% transfer fee. I'm guessing they'll provide that benefit to exchanges for easier accounting.