Way too normal size of references in stackrel when running `latex`

Consider the code

\documentclass{article}
\usepackage{algorithm2e}
\usepackage[hidelinks]{hyperref}
\begin{document}
\newtheorem{thm}{Theorem}
\begin{thm}\label{BC}B=C.\end{thm}
\LinesNumbered
\begin{algorithm}
  A:=B\nllabel{lineFoo}\;
\end{algorithm}
$A\stackrel{\mathrm{line}\ \ref{lineFoo}}{=}B\stackrel{\mathrm{Thm.}\ \ref{BC}}{=}C$.
\end{document}

When running latex on it, the resulting dvi file has normal-sized labels 1, while the labels should be, in fact, small-sized.

Later, when dvi is translated to postscript or to pdf, the normal size of 1 is maintained, resulting in an unpleasant output. (Remark: when running pdflatex, the size is small as expected.)

Thanks for repairing in advance!

Reproduce the supplied example with latex, then compare its DVI-derived PostScript or PDF output with pdflatex. Start by tracing the hyperref handling of \stackrel references and the interaction with algorithm2e; done means the lineFoo and BC references remain small in output converted from DVI as they do with pdflatex.