It somewhat worked, somewhat didn't. Sometimes the "tear gas" area would be in a completely different area than the smoke itself. If I remembered correctly, it would be where the smoke grenade bounced off first. This was with the script we tried using in a different server to test things out. I THINK we used the same script, but it could be different.
One problem I know was for sure on Olympus was that, if you shoot it into a building (like the top of an office building) It will spawn on the ground floor