I've noticed since the April update that in PVE the Last Word(by far my favorite gun in the game) and its exotic perk "last word" doesn't activate and many even BACKWARDS. Whenever I'm hip firing critical s on strike bosses and what not it does the SAME damage as if I were ADS. In fact I tested this on some bosses and I would do MORE damage when I was ADS then if I were hip firing like you are suppose to.
Don't know if this happens in PVP but definitely in PVE. Trust me I KNOW what the Last Word can do and what it's suppose to be doing and it's bugged rn for some reason. I don't get my bonus damage when hip firing on bosses, instead I get bonus damage when ADS. Very strange and hope bungie fixes this.
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It isn't that the damage increases when you ads, the effective range increases beyond that of hip fire.