What happened in these Spitfires was that the negative G's pulled would push the floats in the engines all the way back to the top of their closed position. This would cut fuel from the cylinders and 'kill' the engine until positive/neutral G was attained. However, the constant fuel building up behind the floats would flow in too rapidly in an amount too abundant and would suffocate the engine.
Slowing the Spitfire down by going into a half rolled dive could work, but that would kill dive speed, and the problem was fixed up in the Mk.V I think, with its fancy Merlin 45 which was modified to let the Spitfire dive.