I'm sure the indicator shows voltage drop under load. When I did a step down time test on my light, I got the flashing led using an Eagletac 3100mah after about 2 minutes. The battery was not completely charged when I did this. I saw no noticeable output drop from the light, though. However, if your light is showing low voltage after only 20 seconds on both fresh CR123's and 18650's, something's definitely wrong. I'd send it back.