Vortex Sound Research

I have a question for owners of the LXR-02 - I am really drawn to it by the form factor but in all the YouTube demos you often hear this (to my ears) nasty bit-reduced sound.

Is there a general lo-fi tone to the LXR sound or is this people simply abusing the bit reduction effect? I think I'm just overly sensitive to bit depth in sound but I can't help it.