In this study uncoupled and coupled ocean-atmosphere simulations are carried out for the California Upwelling System to assess the dynamic ocean-atmosphere interactions, viz.,the ocean surface current feedback to the atmosphere. We show the current feedback by modulating the energy transfer from the atmosphere to the ocean, controls the oceanic Eddy Kinetic Energy (EKE). For the first time, we demonstrate the current feedback has an effect on the surface stress and an counteracting effect on the wind itself. The current feedback acts as an oceanic eddy killer, reducing by half the surface EKE, and by 27% the depth-integrated EKE. On one hand, it reduces the coastal generation of eddies by weakening the surface stress and hence the near-shore supply of positive wind work (i.e., the work done by the wind on the ocean). On the other hand, by inducing a surface stress curl opposite to the current vorticity, it deflects energy from the geostrophic current into the atmosphere and dampens eddies. The wind response counteracts the surface stress response. It partly re-energizes the ocean in the coastal region and decreases the offshore return of energy to the atmosphere. Eddy statistics confirm the current feedback dampens the eddies and reduces their lifetime, improving the realism of the simulation. Finally, we propose an additional energy element in the Lorenz diagram of energy conversion, viz., the current-induced transfer of energy from the ocean to the atmosphere at the eddy scale.