Bitsquatting is a great name. I’m not 100% that this isn’t just typosquatting though.
It might be subset of typosquatting, but it's distinct from what the term usual refers to because the typos that are statistically likely to result from user input (swapping neighboring keys, duplicating or omitting letters, etc) occur manually on the level of keys and characters, where as from those that result from bitflips ("adjacent" bit sequences) occur invisibly / without a manual mistake on the level of bit-/byte-streams, forming two mostly exclusive sets of domains that could be targeted. A determined attacker would likely target both.
It isn't simple typosquatting because it can involve errors that aren't plausible typos (like "mic2osoft.com" for "microsoft.com"), or domains that a user would never enter manually (like "fbcdn.com" or "ytimg.com", which are used for content delivery at Facebook and YouTube, respectively).