I use the term "Controller", because that's what the C stands for in EPDC (the rest standing for Electronic Paper Display), and that's how the driver is referred to in the kernel

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Now that we're done with nitpicking, a bit more details:
Basically *all* revisions of the MXC EPDC (i.e., since the i.MX5, basically, the Kindle Touch in Kindle-land) have had support for hardware inversion.
It may have been a bit buggy in some instances (the Kobo Aura, apparently), but it was there.
What lab126 did (possibly as early as FW 5.5.x, my old PW2 on FW 5.9.7 certainly behaves differently (i.e., better) than my Kobo H2O in that respect) was start to tweak things so that flashes behaved less inanely when said inverted flag is flipped, and to enable a specific waveform update mode better suited to white on black.
What they did with the Oasis 2 is both refine those waveform tweaks (there's a couple of 'em now), and add a bit of frontlight modulation to the mix to avoid searing eyeballs during flashes.
But all that's potentially completely orthogonal to the EPDC v2 changes. In my eyes, the most user-visible changes that it brought would be a much refined hardware dithering handling. It works wonder on the Forma, but I lack the Kindle hardware to check on the KOA2/PW4, and early feedback when we tried that in KOReader would imply things aren't so rosy there, even if it should technically work as well as on Kobo Mk.7...
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Also, sidebar: KOReader now does HW inversion, unless it's known to be crashy, or we lack the developers to test it (which right know means it's disabled on the Kobo Aura, and on PocketBook).
If you have access to a Kobo, a Kindle Touch or PW1, and a Kindle PW2+ on FW >= 5.5.x, it's easy enough to check: run a current KOReader version, and enable NightMode.
We'll try to use the optimal waveform mode when there's one available (i.e., the earlier iteration on Kindle FW >= 5.5.x, and the refined one on PW4/KOA2) and we'll do HW inversion.
Your Kobo and your Touch/PW1 will spaz out like idiots during flashes, your PW2+ won't

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EDIT: And, yes, the Oasis 1 was using an earlier iteration of the EPDC, unlike the KOA2/PW4/KT4 | Forma/Clara.