It's a local script in StarterGui called CameraScript. When it's disabled the player can move fine. When it's enabled the player can only jump up and down.

local camera = workspace.CurrentCamera
camera.CameraType = Enum.CameraType.Scriptable

for i, v in pairs(game.Workspace:GetChildren()) do
	if v:FindFirstChild("Ship") and v:FindFirstChild("Owner").Value == game.Players.LocalPlayer.Name then
		camera.CameraSubject = v.Centre
		local target = v.Centre
		local x = target.Position.X
		local y = target.Position.Y
		local z = target.Position.Z
		camera.CoordinateFrame = CFrame.new(x,y+100,z) * CFrame.Angles(math.rad(-90),0,math.rad(180))
	end
end

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So I changed the angle in line 11 from -90 to -89 and it works now. Apparently you can't have the camera looking straight down. Such a stupid thing.