from the update notes: [spoiler=Notes]Dynamic Leveling
Attribute calculations for dynamic level scaling have been rebalanced. In general, this means weaker when adjusted down, stronger when adjusted up. Rewards when adjusted down have been increased to compensate. It is now possible to receive your own level of loot from any level of enemy.[/spoiler]
I don’t think it’s working, I still 2-Shot a lot of low enemies as lv.80. No challenge against Veterans and Champions on lower levels either. Tequatl as lv.80 is more than trivial, stand in front of him and spam 1 without any fear of losing health.