I don't think the drag force due to air would work the same in a system with such a high concentration of rocks. It's not like one object falling through undisturbed fluid, which then has to get out of the way, in this case the air would gradually start to move along with the rocks.
This might be better modelled as turbulent flow of a mixed solid/air suspension. But there's no 'edges' to the flow due to the looped dimension, so the viscous forces are pretty uniform... There would still be a terminal velocity, but much much higher than a rock falling through an atmosphere
Also I imagine the rocks would quickly grind themselves to very fine dust, once they pick up a bit of kinetic energy, so then it would behave more like a fluid with uniform density... Could it even end up as laminar flow?