In spite of the "great bargain" this represents, it makes me seriously question HiFiMan company's commitment to anything in their namesake, namely Hi-Fi, or as we used to know it - High Fidelity. The specification says 20 to 20 khz, and when you say it's obviously colored and not flat, that says to me that the dips in response must be at least 3 db around 50-100 or 5-10 khz, to be obvious. Now with that much dip at those frequencies, how much greater would it be at 20 hz and 20 khz? 10 db maybe? That's not just colored, it seems like a bad joke.
Some of the comments at Amazon say the line out is cleaner and better than the headphone out. So maybe that's the problem - a really bad headphone amp.