It looks better, but it still looks kind of squashed. Like the sides are too wide for how tall the VS sprite is, if that makes sense. Maybe it's just me. Also, I think the outlining for his arm could use a little more contrast on the side closest to his face.
His head really seems too large, like as large as his shoulders...
It's a bit pillowshaded: the shadow on his face tells the light come from left, while the shade on his sleeve is coming from top-right.
There is missing shadow on his t-shirt under his arm. The light is coming from left et his body is facing right, so all is t-shirt should be shaded. Same goes for the right part of the (blue) vest. I would say that it should be shaded from about under his right eye (our left eye OPV) until the t-shirt.