There's oxidation, and then there's oxidation. I learned it as OIL RIG. Oxidation is Loss, Reduction is gain (of electrons)
Yes many oxidation reactions involve oxygen, and in brewing, these reactions produce unpleasant compounds. Then there is oxidation, that DOES NOT involve oxygen, and gives very different types of compounds, none the less, oxidized. I'm not sure if this is what is happening with the hop oils, but very well could be. C-C is less soluble then C=C (oxidized), but -OH is more soluble then =O (oxidized). Need to do more reading
As for Palmer, as I've read through it, sometimes he does not quite use the scientific terminology correctly, or at least not clearly such as to avoid misinterpretation