This requires a few players, not just one really, and physics have to be on server side parts (Ex: Not local).
Not much to explain. This basically makes physics of parts that are not near you but near to others, or characters themselves move weirdly and unrealistically. Not really much else I can give.
Edit: Video
So, the way physics work is whoever is closest to the center “owns” the physics. As shown with this test server, Player2 is closer to the characters making physics work better, and network to the server, while the players who do not “own” the physics have seriously incorrect and weird interpolations.
Something that was not shown in the video is the server view. This view was correct, which probably means it is a server to client issue.