I made a system for picking up and dropping items, but when I added physics to it the objects would start to flip randomly whenever you dropped them with any velocity.
Hm… looks like the resolution on the image is too low to read any of the logic. Could you try posting it using the https://blueprintue.com/ website instead? You can just copy and paste your code from Unreal, and it’ll allow other devs to look at it with panning/zoom/scrolling.
Make >physics material< set damping force to 0.7 or even higher, this way it will not bounce back. May still randomly spin once or twice. Physics engines in games have that weird behaviors, nobody can solve really, they just hide it more or less.
Ps.
From watching video it may be colliding with part of player character. And since player character (or animated skeletal meshes) have infinite inertia (they affect physics but by default are not affected) you player character may push that yellow box with quite big forces.