Lost Torque but Gained HP

[welding rod]

I am running 225 ml per minute on a 2.0 liter Ford Focus at 10 pounds of boost. I am using 25% methanol / 75% distilled water. Using Aquamist 1S and triggering at 7.5 PSI. My open loop AFR is 12:1.

On back to back dyno runs with and without water, no other changes, I lost about 25 + foot pounds of torque below 4K RPM, no change at 4K, and then a consistant gain of 3-5 HP above 4K to redline. My intake air temperature sensor is after the water jet so my timing is advancing slightly with the decreased temps.

Since then I have added a pound of boost and advanced high load timing 2 degrees across the RPM range, but I still have a very obvious lull in the power at 3-4 K that I would like to tune out.

I have full control over the OEM computer with my SCT Pro Racer tuning software.

Any suggestions?