The pH-Up sauce is another type of buffer. I've never used it and have never really looked into it, although from the WetMan's post I'll guess it buffers with phosphates. Various folks along the way have reported some problems with this method of buffering -- the consensus seems to be that its not as stable.
The bacteria don't know or care if the ammonia comes from a fish or a bottle. The cycle produces acid. You are establishing the cycle -- once its cycled it will continue to produce acid. Carbonates that are naturally present in your tapwater can absorb a given amount of this acid and the pH will remain stable. When the acid has blown through the carbonate buffer there is suddenly nothing left to absorb the acid and the pH will drop fast. Put a sponge on the counter and start to drip water on it -- it will absorb the water until its saturated and then suddenly you'll have water running off of it onto the counter.
Your cycle is being hampered by a pH crash. You'll want to get the buffer back in place to absorb that acid so that the cycle can finish and the fish can move in. This is something you'll want to address now.
Test your tapwater after its had a chance to sit out for a few hours in a bowl (surface area counts). Deal with those figures. You want a KH of at least 3, maybe a tad higher is nice too. If you have a decent supply of carbonates in your tap then you'll be recharging the buffer at each regular water change and you'll jut want to get out of this hole you're in now. If not you'll need to add some carbonates of your own on a regular basis…
Baking soda will dissolve fully and increase KH all at once. The acid will then start to erode it. You'll add more. It'll start to drop. This will become tedious. Some crushed coral in a mesh filter bag will dissolve slowly over time. You'll add it and it'll take care of itself for months. After tinkering with finding the right amount (try a tablespoon per 10g and work from there) its an extremely stable and low fuss technique. To boost immediately (like in the wake of a crash) baking soda, for long-term KH maintenance try the coral.
You can get the big picture and the fine detail at the WetFeller's
SkepticalAquarist. If you don't have it bookmarked you should -- its a first rate resource.
HTH