it has to do with the camera clipping. you probably used the command CameraRange to make the close range less. when you do this the math or something another starts to mess up when the camera gets far away from 0,0,0. If you did make the CameraRange close value less than 1 try moving it a little closer to 1 and seeing if you still have the problem, or at least as much of the problem.
Erratic Sprite Behavior
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