Physics Substepping doesn't have the same effect from 4.15 to 4.16. In 4.16+ the ponytail in the provided project will have a jitter effect even with substepping enabled.

This is a regression:
Working in 4.15.3-3450819
Not working in 4.16.3-3561208

User Description:

Since UE 4.16, skeletal mesh physics assets appear to behave incorrectly during world movement. Whether it’s ponytails, jiggle bones or arms and legs, they all jerk around uncontrollably when attached to a moving character, regardless of the physics settings I choose.

Enabling substepping in the project settings still prevents bone chains to stretch and separate, but no longer leads to smooth physics behavior. There was a similar issue in UE 4.8 that was fixed in 4.9 (referred to in this thread). Maybe this problem is related?

Steps to Reproduce
  1. Open the attached test project in 4.16, 4.17, or Main
  2. PIE
  3. Run the character side to side and watch the ponytail

Results: The simulated ponytail will have a jitter/stretching effect that wasn't present in 4.15

Expected: For the simulated ponytail to maintain a solid physics simulation during play when substepping is enabled

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ComponentOLD - Anim
Affects Versions4.164.174.18
Target Fix4.18
Fix Commit3596227
Main Commit3624383
Release Commit3643070
CreatedAug 8, 2017
ResolvedAug 18, 2017
UpdatedApr 27, 2018