it looked to me like Loz's gauntlet apears to use hydrolics, but i guess electricity could be the catalyst to activate them, if the handle went to an igniter of some kind, sortta like an electric lighter's igniter but bigger and more powerfull... as for the possibility of limit break, yeah it could have been residual of her breaks i do remember seeing her use at least 3 of them during that fight, so it is possible, i assumed Materia though like Haste, you see how fast they were fighting, especialy after they showed Kadaj absorb the Materia directly into his trenchcoat (armor) i'm guessing, i figured heck maybe the other equips can absorb Materia as well...