Such censoring is typical of 4Kids, but Funimation appears to have done so too, even though it's known for NOT going out of its way to make stuff kid-friendly. For example, in Xenosaga: The Animation, on the English dub DVD release, they actually censored an ALREADY CENSORED scene! I'm not kidding. Re-censoring a scene is the DUMBEST form of censorhip.
In episode 7, when they are in the Encephalon Dive unit, they have to fight off some computer viruses. Everybody does their own ultimate attack, including MOMO. Her attack involves her first doing a Sailor Moon style transformation, in which (just like in Sailor Moon) she's briefly naked. As with most such transformation scenes, this is censored by simply blanking out the shape of the body. In the Japanese version, this was done with black to make a silhouette. However instead of just keeping this censoring, Funimation decided to re-censor it, using white, to turn it into glow-censoring instead of just keeping the silhouette-censoring. That is the single DUMBEST act of "editing an anime for the American version" I've ever seen, outside of some of the stuff that 4Kids did (like turning rice balls into cookies).
Here's the Japanese version.
Here's the American version.
Note that the brighter circular region in the center of this picture is NOT part of the censorship in question. It is an alteration to the video frames made by the uploader to Youtube (where I found the video), as a way to bypass the content-detection copyright system that Youtube uses to scan videos (if the frames are too much altered from the sample frames provided to Youtube by the copyright holder, then Youtube can't detect it as infringing material).
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