Thank you for the replies, unfortunately the problem still persists.
Regarding lighting, the scene has no lighting added and all actors are sprites with unlit materials. is the part that confuses me the most because when i put on lit mode in editor, nothing changes during editor mode (as I expect is correct since there is no lighting). It feels like a post processing but I can’t put my finger on it.
The material currently is called “masked”, and I tried using both opaque and translucent sprite materials but presented had the same.
Depth of field is edited and same thing. 
I also checked the engine scalability settings and they are set to Epic.
Double checked the lights in the scene. I am relatively new so I could have missed something regarding lighting though. is what I see.
Lighting only view:
Lit
Unlit
is a real head scratcher!
EDIT update: Just noticed that you can disable post processing in the camera via the post process blend weight. Setting it to 0 makes no difference though. Problem might be elsewere. Perhaps its a bug that unreal can’t process sprites in perspective mode without colorfade and blur?