We recently demonstrated a magnetic parallel dipole line (PDL) system that serves as a unique diamagnetic trap with a fascinating one-dimensional camelback potential along its longitudinal axis. The system can be realized with a pair of transversely magnetized cylindrical magnets and a cylindrical graphite rod as the trapped object. We present more detailed experimental and theoretical studies of the finite size effect of the rod and its impact on the stability and oscillation dynamics of the trap. We show that the camelback potential effect only occurs when the length of the PDL system is beyond certain critical length (LC). The length of the trapped rod determines the “effective camelback potential” and is subject to maximum and minimum values for the trap to be stable. Both length and radius of the rod determine the damping dynamics or the quality factor of the oscillator. These characteristics are important for designing the PDL trap system for various sensing applications, for example, we demonstrated a PDL trap gas viscometer system through measurement of the oscillation damping time constant.