I know that the equal loudness curve flattens somewhat as the SPL increases, but still at 120db we are less sensitive to lower frequencies then higher.
But going from there to that THD is inaudible is a huge step, and it doesn't jive with common sense. Now, I do not know at what level THD becomes audible, 5, 10 or 20%? My listening for THD has been subjective, and at first even unintenional so I don't have any measurements to back them up.
For THD to be inaudible the brain would somehow have to know what the original signal was so that it could discard all other information, that is common sense. That is a task that my brain isn't up to, maybe it was a factory option that my parents were to cheap to spring for