Shadow cast by Paper2D Character has a gap

Hi All!

I have an issue with a Paper2D Character (that has a Paper Sprite component with the default Masked Lit Material).
It does cast shadows but the shadows only start a small distance after the origin of the character. You can see the gap between the sprite and the shadow in the 2 screenshots below. I’ve also attached the lighting config of the character.

I’ve tried playing a bit with the char and the lighting settings but without success. Am I missing something?
Any help would be much appreciated!