(Putting this here because, even though its not an issue with the new site, its still an issue with the new emote processor, and #1204105649244479518 is filled with spam/personal support tickets)
The old emote processor had a quirk that, if it was given an emote smaller than a height of 128px, it would upsample it using nearest neighbor by a maximum factor of 4x.
This also meant images smaller than 32px height would have a 4x image height smaller than 128px, so if you uploaded a 16x16 image, the 4x image would be 64x64, smaller than 7tv normally allows.
This was particularly useful for retaining quality with pixel emotes like
(which are the main things that would be smaller than 128px anyway), which could be uploaded as-is and retain how they look without any blurriness.
The first image is a ppL upload from before the emote processor change that uses this trick: https://old.7tv.app/emotes/01GRXBJ9MG0004RVBCVMBM5FSM
The second is what the exact same image being uploaded results in today (very ugly): https://old.7tv.app/emotes/01K0M357CR5QMRGG2R4BPA8813