When both characters are KO'd at the same time, cloth physics lock up.
Steps to reproduce:
1) (optional) Select the same character to facilitate traded hits.
2) Have both characters hit at the same time, losing the last life.
3) During the next round, skirts and/or hair of some characters stops animating properly.
Cloth physics continue animating as normal.
Cloth physics freeze up, not moving but changing abruptly during some moves, then locking up again.
When one character supers, the opposing character returns to normal after the super flash.
After the round, both characters are fine for the next round.
Screenshot of physics locked up. Most obvious is Jaina's hair.
After super, the opponent is back to normal.
2.6GHz Intel i7-6700HQ
Nvidia GeForce GTX 1070