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mine does that when it's really middy, and sharp between 1-2k I find. just kinda even out your signal so you punch thru but don't shoot past, and you should be fine. im pretty sure the light just means that compression is kicking in anyways?
definitely berry Oakley's tractor. the yellow sparkly one. he made it sound beautiful beyond the era, and it has mods and cool stuff to play around with. without question.