My guess would be that the engine is expecting textures with pre-multiplied alphas. Your transparent pixels are probably white instead of black (as they would be if they were pre-multiplied) so the white gets blended in at the edges to create fringes like that.
So I cannot just export as alpha pre-multiplied png ? Try this it work pretty well, I suppose I got this artifact because of the bilinear filtering taking two value one with alpha = 1.0 and a color and the other with alpha = 0.0 and white.
Hello, I have the same problem, but setting to neither black nor white would work, because the game is only black and white and it would always show :I
Alpha in PNG is unfortunately a trash fire of incompatibility and has been for a long time. The implementation choices are not very useful for games
You need to use TGA, or PSDs straight out of Photoshop, if you want to have correct control of alpha/color values.