Hit Event never occurs

Hello everyone!

I have a character class with following constructor:

	PrimaryActorTick.bCanEverTick = true;

	Capsule = CreateDefaultSubobject<UCapsuleComponent>(TEXT("RootCapsule"));
	Capsule->bGenerateOverlapEvents = true;
	Capsule->SetCollisionResponseToChannel(ECC_WorldStatic, ECR_Block);
	Capsule->SetCollisionResponseToChannel(ECC_WorldDynamic, ECR_Overlap);
	Capsule->SetCollisionResponseToChannel(ECC_Pawn, ECR_Overlap);
	Capsule->OnComponentHit.AddDynamic(this, &ACharacter2D::OnHit);

	RootComponent = Capsule;

	Movement = CreateDefaultSubobject<USimple2DMovement>(TEXT("2DMovement"));
	Movement->UpdatedComponent = RootComponent;

	AutoPossessPlayer = EAutoReceiveInput::Player0;

Function OnHit, that is binded to OnComponentHit, is defined as follows:

void ACharacter2D::OnHit(UPrimitiveComponent* HitComponent, AActor* OtherActor, UPrimitiveComponent* OtherComponent, FVector NormalImpulse, const FHitResult& Hit)
	UE_LOG(LogClass, Warning, TEXT("Hit!"));

I constructed test level with blocks consisting of simple square sprites with following collision properties:

The thing is that this setup does not work at all.
Event is being triggered neither by stepping on blocks nor by jumping or running into them.

By the way, I am moving the character with

MoveUpdatedComponent(DesiredMovement * DeltaTime, UpdatedComponent->GetComponentRotation(), true, &Hit, ETeleportType::None)


Does anyone have any idea?

Tried moving the character with
UpdatedComponent->SetLocation(UpdatedComponent->GetLocation() + DesiredMovement * DeltaTime);
Still no luck. Tried even dropping on him physics simulated object. Character blocks it, but hit event does not occur.