I understood that. I’m just saying (like another poster above. I had not noticed his post previously) that the reasonning followed in this thread is flawed. It works for 1 or 2 blue eyed people, but I think your  “and so up the chain” is not correct. For some reason , I can’t wrap my mind about the case of 3 blue eyed people. But if there are at least 4 of them, the reasonning doesn’t work.
Because if there are say, 5 blue eyed people, any islander knows for sure there is at least 4 blue eyed people (excluding him, if he has blue eyes, since he doesn’t know his own eyes color) , and also knows for sure that every other islander knows there are at least 3 blue eyed people, because every one of them can see at least three of the 4 b.e. islander he himself can see.
And since all islanders know that all other islanders know there are at least 3 blue eyed people, nobody can assume that someone else will believe that someone else believe there’s zero (or 1 or 2) blue eyed islander.
So, the beginning of the reasonning is correct :
A thinks there might be only 4 b.e. islander (5 minus him, since he doesn’t know he’s blue-eyed)
A thinks that B might think there are only 3 of them (5 minus him because he doesn’t know he’s blue eyed, and B because B doesn’t know his own eye color, either).
But going further is not possible :
A and B both know that everybody can see at least 3 blue eyed people. So, they know that nobody can believe there are less than 3.
Therefore, A cannot think that B might think that C might think there are only 2 of them.
As a result, the oracle statement doesn’t add any information about what other islanders could think about what yet other islanders could think. The “information” provided by the oracle (“there are at least one blue eyed person here”) not only is already known by everybody, but also everybody knows that everybody else already knows it.
Hence, the oracle statement won’t change anything. Nobody is going to jump in the volcano.