Shadow issue with flashlight in player blueprint

I have a spotlight in my player blueprint, which acts as a flashlight. Unfortunately, the shadows do not project correctly from other character meshes.

Instead of projecting onto the walls/floor, the shadow kind of projects around the character mesh, as you can see here:

If I duplicate the flashlight spotlight and place it in the scene, it casts shadows correctly:

I should add, one of the two characters is hidden in game and is supposed to be a ghost that you only see by its shadows.