Shadow LOD Error (PC)

http://imgur.com/a/kU1wk

I'm having issues with shadows when I'm on a flying mount. Whenever I'm in the air they become very blurry and low resolution. If I tick the LOD option they are corrected, but now I'm dealing with poor draw distance. The shadow LOD option seems to have no effect whatsoever.

It's almost as if the shadow options are reversed, since they become clearer when the LOD is on. You can see for yourself in the screenshots I linked to.

EDIT: I've tested this with another person and they experience the same exact issue. I believe there is a mixup in the options somewhere, and on and off has been switched for shadows in LOD mode.