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If I scale up the skeletal mesh, it doesn’t stay inside the capsule component.
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If I create a separate skeleton after importing, I’ll have to retarget the poses by hand and risk deformations.
Solved it! I had to go to Blender and play with the size of model. Then in my case, scale the model up in unreal engine while targeting the UE4 skeleton . The model is giant sized, but when I add the anim blueprint it shrinks to the appropriate size.