Always important to remember that just because a torp passes under the keel and doesn't explode that it may not be the game's influence setting thats not working. Its possible the torpedo could simply have failed like a dud but without a report because it didn't actually make contact and not explode. This being said I've had better luck getting them to blow via influence when I set the dial to contact only... I tried to do some testing and establish how things all worked but the whole thing was pretty much hit or miss. Anymore I just go for contact shots to be safe.
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GT
USS Hammer
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