Color Blending While Moving

This will most likely be a setting in post-processing but I spent many hours trying to figure it out by trial and error with no luck.

Problem - Thin textures with black border overlay merge into just black overlay and flickering a little. My first thought was motion blur, but turning that off did not help.

TL;DR - Is there setting to make textures look good while moving?

In-game texture while standing still

139075-movement0.png

Texture while moving

139076-movement1.png

Forgot to mention I am using 2D sprites from Paper2D