I am at a loss to supply the mechanism, but based on the problems I've worked, and based on the theory that my instructor has taught, a general thumb-rule is that iodine on adjacent carbon atoms (vicinal di-iodo, if you will) are unstable, and they are eliminated as $\ce{RCHICH2I -> RCH2=CH2 }$
An idea for this can be picturised (though this may possibly be the incomplete or even incorrect reasoning) by considering that iodine atoms are bulky, and steric factors cause strain in the main chain. Moreover, there are possibilities of van der Waals' forces between vicinal iodine atoms, and also the good leaving tendency of iodine, that may favour the formation of $\ce{I2}$ by elimination.
A brilliant example that lucidly explains this is the reaction of glycerol with excess of HI; after substitution of all the hydroxyl groups, there is an elimination of $\ce{I2}$ as discussed above, leading to the alkene of your original question. Subsequently, there is an addition of HI, indeed following Markovnikov sensibilities, that leads to the formation of 1-propene. It subsequently adds HI to yield your final product. Thus, 1 mole glycerol consumes 5 moles of HI; 3 via substitution, 2 via addition.
Now, the last example of glycerol wasn't strictly necessary, but I personally find the sequence quite beautiful; a single pathway leading to 3 rounds of substitution, two of addition and all interspersed with a unique type of elimination, and all this when we barely had a handful of reactants to begin with.