I believe it''s because of the way Md2''s (and quake 1 MDLs too) store their vertexes as bytes. If you play Quake and Quake2, you''ll notice the jelly effect.
It''s also possible that the jelly effect comes from the fact that the animation is achieved through the use of multiple "frames" of the model in different poses, and that the vertexes seem to "wobble" frme to frame because they are placed by hand, and not by mathematical calculation.
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Something kinda sad about
the way that things have come to be.
Desensitized to everything.
What became of subtlety?
--Tool