Sprites are rendering with a weird blur and orange lines

If you look at the picture the problem is fairly obvious. I am experiencing a problem when importing sprites from a sprite sheet that is a clean png. When imported the crisp pixels blur and this orange outline appears. I think the orange comes from the original background of the image however this image is squeaky clean when i import it after editing. The editing and sprites are done by a friend and i am not involved with there creation and editing aside from small bits of pixel work.

I feel like im just missing a setting and this will all be fixed.


After playing around with texture settings i realized it was super simple. I just set the filter to nearest under the texture settings.