The character model is animated using motion capture.
Japanese 3D Artist and Generalist Hirokazu Yokohara continues experimenting with smoke creation in Unreal Engine 5. This time, the artist has managed to set up a beautiful real-time red and blue fire and smoke FX using a combination of UE5 and Niagara Fluids plug-in that allows adding smoke, fire, explosions, water, splashes, and many other physically plausible effects to your UE projects. What's more, the artist demonstrated that the character seen in the video is animated using motion capture:
And here's the artist's previous project: