Hello everyone.
Is there a better way to deform a ball with mesh deformer while it is moving (being animated - see attached file)? I have to do it in similar way, because in the final version I have to deform the crumpled paper ball, which unfolds (become flat) if I use the SoftBody / Cloth modifier directly on it.

My test scene:

Are you trying to make the icosphere turn into a flat sheet of paper? It’s hard to tell what you’re trying to do from this example. But I can tell you that for meshdeform to work right, the deform cage object needs to be larger than the object it’s deforming. The icosphere is poking through that cage all over. You need to scale it up and re-bind.

I don’t know how you think a cloth modifier on the deform cage is going to make it look like unfolding paper, if indeed that’s what you’re trying to accomplish. It’s just going to make it a floppy sphere instead of a solid sphere.