Its called a "soft limiter" and is described in the S4wiki
https://s4wiki.com/wiki/Tuning#Soft_LimiterI don't think it can damage your engine, it's basically a soft limiter like the one at 6800rpm but just a tad lower. Newer cars implement this aswell while stationairy or cold, and the function is (sort of) available on ME7 aswell.