Hi!
I can't see your hierachy, but it seems that you have constraints going in both directions. Meaning that the Hand is Following the Fairy while the Fairy is also following the hand.
This is what is called a cyclic connection and can lead to very messy results.
Generally speaking, you want to have the lighter object follow the heavier one in situations like this, this makes it easiert to deal with the mass and inertia of the animation.
So in this case I would constraint the Fairies Root control to the right hand control and then animate everything using the hand control.
I hope it helps!
