How does Crimson Dance work?

For example if I stack it with some fast attack with initial bleeding damage of 10 it would deal:

10 + 10 + 10 +10 +10 +10 +10 + 10 = 80;

if then I would use some slow attack with initial bleeding damage 80, would it deal:

1). 10 + 10 + 10 +10 +10 +10 +10 + 80 = 150; (sum of each separate stack?);

2). 80 + 80 + 80 + 80 + 80 + 80 + 80 + 80 = 640; (number of stacks is a constant and it will multiply with damage of the last hit?);

3). 10 + 10 + 10 +10 +10 +10 +10 + 10 = 80 and 80.. (it would trigger second bleeding effect?)

Bleed has a duration. If you use slow attacks w/ Crimson Dance, your bleed durations will not be long enough to have 8 simultaneous bleeds.

Thank you for the answer