My very first Hope brake had an adjuster on the top of the reservoir. Even when they were brand new they would lock on if left in the sun and you had to back off the adjuster to be able to ride the bike again.
C2s, the C being for Closed. (i believe)
In a closed system, the reservoir feeds the hose further down the valve, so when you pull on the lever, the reservoir itself is also under pressure. There is a plunger under the adjuster that pushes the fluid up and down exactly as the plunger on the lever does.
On a modern Open system, (i think) the oil reservoir port is positioned so that as you pull the lever, the reservoir is seperated from the pressurised brake system, and is never under pressure itself. As you release the brake the port opens, and the fluid can equalise its pressure/volume with the reservoir, which is open to atmospheric pressuire (save for a diapram that just keeps the air our the fluid and the fluid in the reservoir) to compensate for pad wear and also heating.
[edit]
Brake systems are highly pressurized when you clamp on the brakes. The fluid on the inside is at much greater pressure than the air on the outside. If moisture could pass through the joints and seals to get into the system when there is no pressure differential, fluid would squirt out when you applied the brakes. This doesn’t happen because the system is sealed.
only down stream of the lever. the reservoir doesnt pressurise, and is effectively open to atmosphere. The diaphram only keeps the fluid in the right place, but wont stop moisture getting in the fluid.