Because Crysis looked good, Chris Roberts mandated that Star Citizen would use Cryengine 3.

To make astronomically large spaces fit in cryengine, they made everything infinitesimally small.

So now the inaccuracy inherent in floating point calculations, instead of nudging things a few millimeters, teleports people hundreds of feet out of their ships into space if they bump into a physics object, ladder, elevator, etc.

This is what happens when an ideas guy with no technical knowledge is making technical decisions.

This is not even true, they rewrote the engine to support native 64-bit precision to let them fit large spaces, they didn’t just make everything small. They basically employ all the people that used to make Cryengine since Crytek went out of business, so the engine they are building is actually pretty good.