I've used it before but can't recall exactly where (ie; in which recipe). I've also used finely grated onion, which really gets the tears flowing and, before it broke, I used to use a Zyliss Food Chopper to literally pulverize onions to mix through burger patties and kebabs. I can't say I've noticed any bitterness from either process, but the onion was used immediately.
I found this though, which is basically saying that bitter sulfur based compounds can or do form after about 30 minutes.
https://www.foodprocessing.com.au/content/processing/news/why-onions-can-taste-bitter-43830118This would suggest that if you make a raw onion paste and use it straight away, it should be fine. Bitterness aside, should you store cut onions?
You can't believe everything on the internet!!!!
One thing I have read about onions is that you should not prepare them (raw) too far in advance or store cut onions. It is rumored that cut onions are like a sponge to nasties and they soak up bacteria and toxins. According to food scientists however, this is a falsehood and in fact onions contain elements that prevent the growth of bacteria and microbes. However, you may end up with bitterness.