It does not occur when you play singleplayer or you are the server.
I think its a problem because replication of rigid bodys and character movement are handled differently.
Here is a link for the test project:
https://drive.google.com/uc?export=download&id=0B5dnSy4rkJlKMEV4MGNZZWhUOFU
Like I said its basically the blueprint first person example project.
To test it just make sure “dedicated server” is enabled or you set “number of players” to 2 or more and move with one of the clients.
If you set the ping to 100 ms via console command “net pktlag=100” in the client, and then run into the boxes everything explodes.