Yes, the former. Though now that I think about it, a per action energy cost makes more sense.
Well, seems like that sentence was even more confusing than you figured -- it means that the flinch won't occour if the damage received is 2% or less. I suppose I really ought to rewrite that one.
It can hit all Pokémon in the arena, as long as they are all within range. I suppose I ought to make it a tad more specific.
[Super Macho Man] Machop (M)
Ability: No Guard
Signature Move: Triple Clothesline
Super Macho Man is one Pokémon that takes "No Guard" too far. Instead of making an effort so his blows will strike effective and accurate, he keeps on trying to show off by making large, spinny moves. This was a disadvantage, as it would not only harm accruacy, but also waste energy. So, after a long talk, Metallica Fanboy finally convinced the Fighting-type to concentrate all of his braggery in one single attack.
Before using this attack, Super Macho Man will pose to all spectators -- be them just two trainers or a whole crowd -- thus making him open to attacks. Aftewards, he will perform three wide-ranged spinning clotheslines, which he can miss regardless of the circumstances because of how it's focused towards looking good rather than being effective. All the spinning can make Super Macho Man dizzy, and it gets even worse if something went not quite as he planned. Finally, he's open again just after he finishes using this attack, and any blow landed against him then will throw him off.
Type: Fighting / Stat: Physical / Base Damage: 9% per blow (27% total if all hit) / Accuracy: 75% / Target: One specified target, plus whoever is close by enough / Energy: 5% per action / Duration: 3 actions
On the first action that this attack is used, it's performed with 1- priority, and attacks landed by then will cause 2% more damage. For each action, this attack has a 25% chance to miss regardless of boosts to accuracy, drops in enemy evasion or No Guard being in effect. If the opponent attacks right after the third blow from this attack, Super Macho Man will flinch on the next action; this will not happen, though, if the damage caused was 2% or less. Missing will make Super Macho Man confused after the attack; the more misses, the more severe the confusion gets.
Usage Gap: 9 actions