M8 is my poor man's MM and I am very glad to stumble into this discovery via this thread http://www.reddotforum.com/showthrea...e-M8-m8raw2dng
Basically, the sensor data has 16 bit but Leica firmware only saves in 8 bit, throwing away info in the shadow.
Arvid discovered how to set M8 to output 16-bit in Leica's RAW format and wrote a tool to convert the output to DNG. It works for C1, LR, PS Raw Editor. If you use C1, don't use option 'c' when converting RAW to DNG. Very cool.
M8raw2dng – Tool to convert Leica M8 RAW files to DNG