This is a type of phase distortion that I found in the CCRMA Snd wave editor, where it is referred to as "Audio MSG" (https://ccrma.stanford.edu/software/snd/snd/sndclm.html#contrast-enhancement). It will add brightness and saturation to a signal. Please note that the effect will still color the signal even if the knob is fully counter-clockwise. Like the Bitshift module, there is a range selector to set the expected range of the input signal.
Patch Ideas: Aside from the obvious use as a mix enhancer, try modulating the Amount parameter with another audio signal to use this as a creative distortion.