c3hammer, what NLE are you using? I think you are absolutely correct in using 16-235 with the NLE you are using.
However, I edit in Premiere on a Mac, and with Premiere, 0-255 and 16-235 look exactly the same on the waveform. It's only when I set the GH4 to the goofy 16-255 that the waveform does exactly what it does in your example...clipping highlights. From my understanding, this is a flagging error. With Quicktime on a Mac, 0-255 and 16-235 are flagged correctly.
But in your example, and I can assume you are on a PC (sorry for my ignorance of what program you are using), it looks like 0-255 is also incorrectly flagged and is clipping your highlights. This is not a camera issue.
However, in your circumstances, at this point it looks like 16-235 is the way to go.
However, I edit in Premiere on a Mac, and with Premiere, 0-255 and 16-235 look exactly the same on the waveform. It's only when I set the GH4 to the goofy 16-255 that the waveform does exactly what it does in your example...clipping highlights. From my understanding, this is a flagging error. With Quicktime on a Mac, 0-255 and 16-235 are flagged correctly.
But in your example, and I can assume you are on a PC (sorry for my ignorance of what program you are using), it looks like 0-255 is also incorrectly flagged and is clipping your highlights. This is not a camera issue.
However, in your circumstances, at this point it looks like 16-235 is the way to go.