Still good distortion for a dynamic even at 100db. I bet it'd be fine even with an extra 10db.
How loud? (I have no idea what 82% or 100% is in audacity or 3 O'clock on O2 without knowing output voltage of source). How do you know it's 20mW? Can you measure with a DMM with a steady state 30Hz on the headphones? Most importantly, are you testing or actually listening to music when the flub-flub happens? The K7XX driver isn't that big. 30Hz test tones tend to do a lot of screwy things to headphones with small drivers, e.g. Grado.Your AT has a huge advantage in that the driver is sealed. Open-back headphones need to work harder (more excursion) to maintain same bass level.Ppl says K series needs amp because they sound kind of dead from an iPhone and also because they are less efficient compared to Grado, AT, Denon, Fostex (dynamic) 'phones.If the K7XX performs fine while listening to music, I wouldn't worry about it.
Last measurement shows what happens when you put some 1/4" open-cell foam, the grey, medium density type that I've linked in other threads before, in front of the driver as I mentioned above. It's not perfect, but it does sound noticeably smoother and more relaxed to my ears than stock.