Well don't think you did anything wrong. When the FREAK is used as a morph for M3, the body is morphed way past M3's bones. You may think a Joint position pose may be in order, that fixes some areas, but not the hands. There are 15 bones in each hand, the fingers being slender means the bones need to line up with the mesh of them. I tried numerous times, countless hours in the joint editor throwing things around, trying to get something to work. It didn't happen.