What is known in the literature as discrete torsion are phenomena of equivariant ordinary differential cohomology, specifically of circle 2-bundles with connection modelling the B-field in string theory over orbifold base spaces.
Discrete Torsion and Gerbes I (arXiv:hep-th/9909108)
Discrete Torsion and Gerbes II (arXiv:hep-th/9909120)
Discrete Torsion, Quotient Stacks, and String Orbifolds (arXiv:math/0110156)
Generalization to heterotic string theory is discussed in