The new HDAO generates a black glow/halo around characters when close to a wall. It's not a shadow since a shadow would not move along with the view.
Screenshots:
http://cloud-3.steampowered.com/ugc/685971522324608932/51FBF052BCFDA616FA8782D3E982C022C4BA23EF/
http://cloud-3.steampowered.com/ugc/685971522324606410/F64836BE109EFA45850354486ECCC45145DD5BF1/