I was recently playing around with GPMP making huge gravity fields, when I decided to throw a stickman in and see what happens, when this strange behavior occurred. I made this save to demonstrate it:
Any ideas on why this happens?

In my opinion, this "dancing" effect is a glitch, because stickmen used to continue falling until they hit the gravity source, or another object in the way.
True, though it does seem odd when everything else non-solid falls like its supposed to, except for stickmen which float above a gravity source. Also, try pushing the down arrow key or the s key for the other stickman.