It looks like some spherical aberration combined with some mis-alinged lens elements.
The red halos could be from the spherical aberration, or it could be that the scope is just not focusing these long red wavelengths that a modified camera would be picking up.
Even though it is called an "apo", it's probably not really with just an air-spaced doublet lens.
You get what you pay for, and you will have to decide if is reasonable to expect perfect performance in an inexpensive Chinese doublet, but the fact that there is spherical aberration and that the core of the star is not centered is not acceptable in any case.
I would send it back.