The virtual/open LSD is just the ABS system braking the spinning wheel. The nice thing is that it for the first time in BMW history is enabled with DSC completely off. I have tested it on ice tracks, slalom and a dry racetrack, and it works really well with 316i/316d. I don't know how it would cope with a 320 hp engine, or long stints on the track. I guess it would eventually disable itself because of heat.
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