I can't figure out what is going on. I spent about $200 on this first ad and got this CTR/CPC.

Then I ran another $700 of traffic to the ad, and the CTR increased dramatically, yet the cpc hardly moved. Help?!

Lately i haven't seen much of a CPC discount without getting .2%+ CTR's. Not always the case of course.
Is this all on the same day? Maybe pause and restart the camp on a different day cycle and lower your bid a bit.
It was nighttime going into morning.
How many hours / days has it been live?
If it's the same day the CPC won't go down that easy, if you have the same CTR into the next day it will drop, in my experience
It was just the first day. Not sure what happened really, but I read a thread that made me think I might have been buying up a lot of premium inventory because I hadn't unpaused until late in the evening and I had set a high spend cap. I started a similar ad the next day and set the CPC significantly lower (.65c) and had a much lower ctr (.082%) and the CPC was only .50c. I'm guessing it's just not a good idea to unpause late in the day with a high spend.
I'ts because the CTR wasn't that dramatic of an increase compared to competition.
Yes it's technically a ~50% increase in CTR but the problem is your CTR is competing with others and 0.143% isn't really ahead of the curve for any niche, so thats why the CPC didn't drop much.
I think 0.2% - 0.25% is where you'll start seeing the CPCs you want. CPC really drops then around the 0.3% CTR range!