Setting the P/D-PID too high causes the motors to get hot

As ARNE-W said, this is a well known issue in small and powerful racer multicopters. Take a look on the betaflight FAQ, they have a lot of information about it, there have been a lot of burned motors because of this.

just add D therm until your bounce back disappears at all and stop right there.

If you were to look at the motor current with a scope, you would most likely see large current spike even though the metered current seems much lower.
Very large current spikes cause all kind of problems, like saturation.

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