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Do they actually do a very lengthy test with all the devices they produce? And I can't explain sibilance disappearing through psycho-accoustics.
As far as I know they do - https://www.head-fi.org/threads/fiio-factory-tour-2016.812274/
You'd be surprised at the filter our brains can put on things. For a start, our audio memory is very fleeting, and we can completely ignore some things when we are listening for something else. If you have time, you might find the first 10-15 minutes of this video well worth watching: