I've been Googling this issue for about an hour now and it's still not resolved.

What is this turd? Some areas of the surface look pinched and jagged. Never had this happen before when pressing "3" for smooth preview. I checked my normals and they are fine. I tried checking and unchecking "Preserve Geometry Borders" option with no luck.
Verts seem to be all connected when not previewing smooth surface:

No modifications were made to the geometry. Does anybody know what's wrong?
Replies
Did you use Mesh > Cleanup and see if anything turns up?
When I exported an obj from ZBrush, the "Export Sub Groups" button under "Export" was checked. What it basically does is slices up your mesh into multiple uneven pieces. When I exported the obj with that option unchecked, everything was working as it was meant to.
I believe this isn't a problem when GoZ is used.
p.s. kodde, appreciate your suggestion!