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IMHO it's a combination of things, but it really comes down to the bushings. The action of the eLSD probably contributes if there's any loss of traction. Soft sidewalls and low tire pressure will increase the amplitude of the oscillation.
If you're going straight, and don't have a loss of traction, you're probably good. Where it's most noticeable is under hard acceleration with a direction change, as in a two-lane passing maneuver. Once the oscillation starts, it either recovers quickly on it's own as the car settles, or it's made worse by the contributing factors of soft sidewalls and/or driver input.
For me, the BMR lockout kit provided a significant improvement. 1LE solid bushings are probably the best fix, but require a lot more work to install.
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