Hey ,
Can you reproduce this using a normal sprite not exported from Texture Packer?
We need to eliminate which one of these is causing the issue. The exporting from Texture Packer or the Importing and compression within Unreal. If the ‘Nearest’ filter is not producing the results you are reporting, then we have to test to see if it occurs with a regular sprite not exported from Texture Packer.
Let me know your results.
Thanks,