Titanium alloys have an endurance limit - that is, a stress level below which fatigue failure will not occur. This is the same for ferrous alloys (steels). Aluminium alloys do not have this, so even if the stress level is within the elastic limit, failure will occur at some point.
I would guess/hope that the design of the frame is such that any stresses are easily within the endurance limit of the material so failure will not occur. I say easily, because there would be a great deal of uncertainty of the stress levels at any welds.
Effectively you have a cantilever beam with a load at one end (at the drop-out) and fixed at the other (at the BB). The highest bending moment occurs at the BB (beam length x load) and the stress at this point (ignoring stress raisers such as the welds) is given by (bending moment x deflection)/second moment of area. So knowing the section properties at the BB you can calculate a stress level - allow extra for stress raisers and Bob's your mothers brother.
so if:
l = 0.4m
f = 2000N (assumes 200kg to bottom out shock)
then m = 800Nm
assuming 2 stays and that shock supports half the load = 200Nm/chain stay
estimating second moment of area for an elipse (I have assumed solid for simplicity but it shouldn't be too far off):
major dia = 0.025m
minor dia = 0.015m
I = 1/4 x pi x minor x major^3
I = 1.84E-07
Deflection = 0.05m
Therefore the stress = 54MPa
Which is quite easily within the range of an endurance limit for a titanium alloy even if you consider a 5 times factor for stress raisers and the other simplifications.
Suprising how far you can get with simple calcs