Lemma
Let $f: \{ \pm 1\}^n \to \{0, 1\}^m$ be an encoding function, and $d:\{0, 1\}^m \to \{\pm 1\}^n$$g:\{0, 1\}^m \to \{\pm 1\}^n$ be decoding, s.t. with probability at least $1/3$ over random $x \in \{ \pm 1\}^n$ we have $d_H(d(e(x)), x) \leq 1/4$$d_H(g(f(x)), x) \leq 1/4$, where $d_H$ is the normalised Hamming distance $d_H(x, y) = |\{k : x_k \not= y_k\}|$$d_H(x, y) := |\{k : x_k \not= y_k\}|/n$. Then $m \geq n/2$.
If we could find orthogonal $\tilde{U}$ s.t. with probability $1/3$ we had $\|\tilde{U} - U\|_F \leq 2^{-12} n$, and encode $\tilde{U}$ using $n^2/16$ bits, we canwould chose $\tilde{W}$ to be athe Frobenius-norm projection of $\tilde{U} \tilde{D} \tilde{U}^T$ on symmetric $\{\pm 1\}^{n\times n}$ matrices.