PleasantSounds
Headphoneus Supremus
My unit is behaving exactly the same as your. Pretty sure this is intentional and how Violectric decide to implement it. If you look at their phono amp the V600 which have similar balance adjustment function, then it become pretty clear:
http://cdn.head-fi.org/6/62/900x900px-LL-62367098_V6002013Front.jpeg
Thanks.
Even though I'm perplexed why they have chosen the "poor man's balance" approach in their flagship unit, it's still reassuring that the unit works as designed.