The Order of Operations ruling renders this moot, but I want a hypothetical answer using the original ruling. If Absolute Zero had a Twist the Ether on him and then Cramped Quarters Combat entered play, then when he went to deal himself 1 psychic damage, what would happen?
A) He announces 1 psychic damage, which Twist the Ether may turn into either 0 or 2 damage of any type Visionary chooses, which then becomes 1 or 3 melee damage due to CQC.
B) He announces 1 psychic damage, which CQC increases to 2 while making it melee, and then Visionary may change it to 3 of whatever she chooses. (This outcome, now always true due to the OoO ruling, is almost certainly impossible under the original sequential resolution, but I mention it for completeness's sake. If CQC mentioned the increase first and then the type change, I could see a little squinting to allow this to happen.)
C) He announces 1 psychic damage, which Visionary reduces to 0. No damage is dealt, so CQC cannot increase it. (I'm assuming this is a legal outcome under the OoO ruling, but am not at all sure, so in fact this question might not be pure geekery after all.)
D) He announces 2 psychic because all damage is increased, then Visionary Twists it into whatever she wants. (Similar to scenario B, but worded differently under the assumption that the "announcement" is instantaneous and applies all static effects before any triggers can occur, with the assumption that type-changing, because it matters sequentially, must be a trigger, but that increases can be static. Probably utterly wrong.)
E) He announces 1 damage; what Visionary changes it to is irrelevant, as TtE's effect is overwritten by CQC, and the end result must be 2 melee. (Almost 100% sure this is wrong.)
F) Some other scenario even more far-fetched and contrived than all of these. (I could swear I'd come up with one while working through these four - edited to add scenario E, which might have been what I was thinking of, but I don't put it past myself to have had an even weirder idea flit through my brain.)