It should only slow you if the actual melee hits you not the smoke. Like a throwing knife. Then people will have to be more accurate with them.
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I main a gunslinger and I can't tell you how upsetting it is to throw a smoke thinking I swapped my subclass before I jumped into pvp. I've stuck so many people with smoke its ridiculous, the only thing worse is that the smoke activation barely does any damage, might as well have hit em in the face with a half dead octopus