This was addressed in the forum some time ago, but that thread is so convoluted I might just as well recap here.
At the same time we converted dragmath to a moodle CSV product per Anthony's initiative we implemented some changes that I had asked Chris and Alex to make in dragmath. Specifically, dragmath employs xml files as symbol tables as their format specifically allows for the placement of tokens before and after a text expression for the purposes of identifying the text expression to a display application (such as a tex filter or asciimathML). Dragmath never inserted dollar tokens because it was just producing Tex, and the integration file then had to add the tokens, which resulted in the text = '$' + text + '$' entry in all the integration files. We created a new export format called MoodleTex which added dollar signs before and after the latex and then also added an asciimathml export option, which included backtick tokens (though arguably we should have created an asciimathml and a MoodleAsciimathML export format)
The files you imported to the Moodle CSV did not come from the current at that time dragmath CSV.... one reason I was concerned at the time.....
WHile I am talking about this, there seem to be two of dragmath's direcftories left in the tinyMCE directory.... I understand why the integration files are there, but not the HotEqn and classes (not sure if these are the actual directories but I think they are) .....
The Dragmath applet, and related documentation, has been moved out of tinymce plugins folder and into /lib/editor/common/dragmath.
Leaving this issue open - the emoticons might benefit from a similar move.