Graphics decrease at close range

[Taramafor]

Ok, I don't know what it is but for some strange reason half the time people get up really close (or vice versa) they turn into... Well, I'm not sure what to call it. Fuzzy people? What's really baffling me is that I'm playing with ultra graphics and I know for a fact my comp can handle it. 16 gig ram, ASUS sabertooth motherboard, 660ti graphics card, 3.4 I7 processor. Etc.

So what the bajeezes is going on? I mean, I can understand graphics decreasing at longer ranges to compensate for close range but this is the reverse. It's most distracting when squinting at someone that pops up that needs to be shot (or repaired or healed).