Most permanent magnet motors will also work as a generator and start producing a voltage which will get higher as their driven speed increases.
Although this is great for regenerative braking, it unfortunately produces unwanted drag when the motor is not being used, which makes it harder to pedal.
It works pretty much like a standard hub dynamo:
But the Magic Pie is much bigger and can therefore generate a lot more power!
This might also explain why it causes the extra drag.
Alan