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The quescient voltage at the drain is VDD. Thus the drain voltage can go down ~1VDD voltage before M1 leaves the saturation region and would cause distortion.
In this direction the inductor is cahrging-up with extra energy, and when the drain voltage returns back to VDD the only way for the inductor to lose the extra energy is pulling-up the drain voltage above VDD, and lose the energy by a current through the capacitor and the resistor.
This amplitude has to be close to the 2VDD at the drain, because between the extra energy and the peak voltage (about -1VDD at the charging up of the inductor) there is connection.
Coupling Capacitor acts as a Voltage source due to its high capacitance value.( its charge is constant as VDD ).Besides, the Inductor acts as a Constant Current Source due to its high inductance value.
Imagine that Current Source is open circuit for AC, Voltage Source short circuit for AC.Load Current also creates a swing around VDD so when you add or extract this sinusoidal swing you will see that the peak Load Voltage can reach 2*VDD.