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Very cool game good sir! Wonderfully designed too.

How did you achieve the 'smearing' effect on the environments? Is it done as post-processing for some layers or is it a shader? 

Thank you! The wobbly lines come from a modified sprite shader I wrote. It samples the sprite image pixels with a noise offset. I've been thinking about posting the source already, I should probably get to doing that.

As mentioned above, I finally took some time to actually put the shader in a small sample project, it's available here if you're interested.

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Thank you for following-up! I will check that out soon. I'm curious to see how that fares with pixel art projects.