Peculiar velocities affects the redshifts of distant galaxies and introduces distortions in all statistical measures of the reconstructed large-scale structure. These distortions are in general complex to model. In this talk, we focus on the streaming equation which is often used to model these distortions in configuration space. Current phenomenological models based on the streaming equation do not work well at small scales. Using N-body simulations, we investigate and study the impact of how the flipping of pairs by peculiar velocities affect the streaming equation at those scales. We also take a deeper look into the pairwise velocity distributions and show how field and halo particles contribute to these distribution. With a firm understanding of these effects, we hope to pave way for better phenomenological models which could be utilisied to obtain precise cosmological constraints from future telescopes like EUCLID.