When stretching or squishing a physbone that has angle limits applied, the physbone will still stretch and squish based on the direct distance from your hand to the physbone, even if the physbone cannot move in that direction due to angle limits.

This results in physbones that can be stretched downward while being pulled upward, for example.

The expected behavior is that physbone stretch and squish are applied with a weight based on the difference between the angle of the physbone and the angle of the direction from the physbone to the hand when the physbone is meeting the angle limit.

For example, a physbone with an angle limit of 0, when pulled at a 45º angle to the physbone, should be stretched to sin(45) in degrees.

I've attached diagrams for current and expected behavior, The blue is the physbone at rest, green is the stretched physbone, and magenta is the player's hand + distance from the first bone.