Quick answer: Unreal PhysicsHandle releasing an object dropping its built-up velocity? Handle applies physics constraint; release zeros velocity - capture and reapply.

Player swings a held object; releases; the object falls straight down instead of flying.

Capture velocity pre-release

FVector Vel = Comp->GetPhysicsLinearVelocity();
Handle->ReleaseComponent();
Comp->SetPhysicsLinearVelocity(Vel);

Restored velocity; physics integration continues from there.

Or use a constraint

Physics constraint with proper damping. Release breaks the constraint; velocity preserved.

Test throw mechanics

Pickup objects; throw them; verify they fly correctly. The bug is visible.

“PhysicsHandle is a constraint. Constraints don't preserve momentum on release.”

If your game has 'throw' mechanics with PhysicsHandle, the velocity restore is mandatory. Plan it.

Related reading