So how does TT's Armor Reduction Property Work?

Monsters I 100% hit (aka my level or lower) get hit by the same value. It's still 75k the highest I've seen and yet to see a 76-77k. This leads me to wonder if level difference damage penalty is tied to the PDRate part of the calculation prior to reducing the damage (if it's done at all) or if Triple Throw's weapon defense ignore aspect negates it altogether.

EDIT: Confirmed seeing 76k on a monster 2 levels ahead of me... Does level difference damage reduction not exist anymore?