What grits of sandpaper do you have? I'm still inclined to recommend staying with grits that aren't too coarse, for this small blade. At a minimum, I'd also stick with one abrasive. I don't think switching back & forth between diamond and SiC is doing you any good at this point. A couple more questions, so I have a clearer picture of what you're doing:
1. Are you trying for a shallower (narrower) bevel angle, or are you just trying to recreate the bevel at the 'factory' angle, after straightening out the recurve?
I ask this, because I've often found it much harder to put a really keen edge on the (usually) obtuse/thick factory bevels of small blades. I always try to re-bevel to a shallower angle, as that will make a wider bevel that's much easier to keep in flush contact with the hone.
2. What stroke/motion are you using (sweeping heel-to-tip, circular, edge-trailing, etc.)?
With my smaller pocketknives, I've had good luck using sort of a 'diagonal' heel-to-tip, edge-leading stroke. In other words, I orient the blade somewhat diagonal to the edge of the hone/paper, and sweeping the blade from heel-to-tip. I keep my index finger on the blade, near the heel, to keep the blade in flush contact through the stroke. With the blade diagonally-oriented this way, you're sort of 'pulling' the heel of the blade towards you, as you sweep the blade across the hone/paper. I find this method better for controlling the angle, especially on a small knife.
Some like to use a 'circular' motion on the hone, as it can be a good way to keep the angle more consistent. I sometimes do it this way, especially when initially removing a lot of metal to re-bevel. But this might seem awkward for others, and if so, might create more problems than it solves.