Hey ,
I’m not sure why it wasn’t occurring for me previously, but I clearly see it now when testing in 4.7.2 and our internal build. I’ve entered a bug report for developers (UE-11445) and I’ll let you know when I see any updates on it. I don’t know how quickly they’ll get to it (Paper Terrain still being in a highly experimental stage), but I’ll see if they think it’ll be in time for 4.8. Thanks very much for reporting this!