A system processes an audio signal using spectrally orthogonal sound components. The system includes a circuitry that generates a mid component and a side component from a left channel and a right channel of the audio signal. The circuitry generates a hyper mid component including spectral energy of the side component removed from spectral energy of the mid component. The circuitry filters the hyper mid component, such as to provide spatial cue processing including panning or binaural processing, dynamic range processing, or other types of processing. The circuitry generates a left output channel and a right output channel using the filtered hyper mid component.