Texture Problem

I don’t know what the hell happened but for some reason whenever I spawn some objects or characters… this weird borderlands kind of texture shows up and I don’t know what to do.

http://imageshack.us/f/163/csassault0001h.jpg/

Phong shading is somewhat borked at the moment. Wait for Valve to release a fix.

Oh so this is a natural thing at the moment?

Yes, everybody is experiencing it. On the positive side, you could make some really artistic effects with those.