Smart Translators capture the max turn speed as part of the creation process. It takes at least 24 hours per viewport (HIP & ADS) to record the look mechanics along all vectors. When the XIM blinks red, it's to indicate that you've hit the max turn speed of the Smart Translator, which should accurately reflect the right analog stick's 100% velocity.
The difference between console & PC look mechanics is console measures velocity whereas PC measures distance.
When you flick your mouse in a PC game, the look mechanics will register the travel distance, regardless of mouse speed. However, when you flick a mouse in a console game, the game will register the movement at 100% velocity for a short period of time resulting in a smaller turn. Think of it as how long the stick is pegged on a controller - the longer the time, the further the turn.
There is no overmax value, it can only ever be 0-100% of the game's turn speed. If your hand speed exceeds 100% velocity, all movement beyond that point is ignored by the XIM.
Long story short - learn to slow your hand movement down a bit to ride the red light.