Most people aren't aware that even seeing a bright white element on a black background in a dark room, on OLED, looks like its blooming. Its the way our eyes work in the dark. I dare someone to tell me that they don't see a glow on bright elements while in a dark room on an OLED, such as the boot logo on an iPhone with OLED in a pitch black room.
That being said, this iPad issue appears to be a software/local dimming algorithm mess up. Notice that the blooming is carrying over the distance of 1-2 local dimming zones. It makes no sense, it can't bloom that hard. There's also the fact that the human eye wouldn't see this much of an exaggerated glow around things. OLED still struggles with black crush, where colors just above barely above black get suppressed and saturation issues too, depending on panel and calibration.
To reiterate, OLED does not have blooming, anyone telling you that OLED display tech has blooming shouldn't be talking because they know nothing. Its literally impossible for an OLED to bloom, self-emissive display tech cannot bloom. What I'm talking about is what the human eye sees, the human eye will always see a glow around a very bright element surrounded by a dark background while in a dark environment, regardless of the display tech, even on OLED.