Fake (Line traces + ribbon)
Video demo from Greenosaur (Unreal Source Discord).
From Greenosaur
“for the line tension IIRC I just add a force every tick to the held item in the direction of the last segment, scaled by how far extended it is. The snagging itself is just line traces”
Illustration of the process
Real (Physics)
Use a cable Skeletal Mesh or a list of capsules with physic constraints.