Pink checkerboards and DirectX stuck at 7

I suddenly began seeing pink squares in various places, some textures are replaced completely, some are just overlayed by it. Sometimes in the main menu random wireframes appeared and the scientist’s coats are overlayed with repeating bloodstains.
I tried to set launch parameters to dxlevel 90 and 98, but the video settings are set to default and resolution to the smallest. Applying any new options will make the hardware DirectX say 7.0 and the bugs appear again.
I did a clean reinstall with no effect. I have searched for answers but the only ones i could find were to reinstall and try dxlevel.
PC Specs: nVidia GeForce GTX 650Ti, i7 920, 6GB Ram, DX11 and Windows7 64bit.

You had it right the first time by posting this in the Help! section. :slight_smile:

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