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MDM = M Dynamic Mode
It's a traction control mode that allows the tires to slip a bit, and allows the rear end to get a little sideways, before traction control kicks in and cuts power etc....
If you press the traction control button for a second, it will go into MDM mode. If you hold it for several seconds it will fully disable traction control (be super careful with this!).
It's more fun than normal! But always remember that any traction control, including MDM, cannot repeal the laws of physics and you can still easily get yourself into a bad situation if you aren't careful.
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