Are my Shure SE535s working as intended?

That sounds bizarre.... I have never experienced anything like that with my 530s. I assume this problem only shows up with the 535s, not your old 530s? I'd be straight on the phone to Shure if I were you. You've obviously spent a fair old chunk of change on these 'phones, so you deserve to be satisfied with their performance. You might also want to create an account at a href="http://www.head-fi.org" rel="nofollow"http://www.head-fi.org/a and repeat your question there. Good luck, and I hope you get it sorted....