'Magic Hands' is a move performed with the Magic Gloves upgrade from Sonic Adventure 2. It is a late game upgrade for Sonic that requires backtracking to an earlier level after aquiring both the Bounce Bracelet and Flame Ring upgrades in order to acquire it.1 On doing so, Sonic gains the peculiar ability to seemingly miniturize and capture enemies inside a transparent ball that he holds, instantly neutralizing the enemy and allowing Sonic to use the ball as a projectile against other enemies afterwards. The skill has limited use since Sonic must come to a complete stop in order to use it.
The skill is exclusive to Sonic Adventure 2 and its ports, and has not returned in any media since.
In Sonic's world, the technology underpinning Magic Gloves would develop over the following centuries into the technology seen in Silver the Hedgehog's cuffs and greaves.
No theories on where they came from though. I could pull a manufacturer out of my butt, like Eggman industries, HexaEco, or Rimlight, but I have no... Actually, if we assume Silver was based out of Crisis City, and that Crisis City is a future New City, Soleanna, which Rimlight Corporation appears to operate out of, then that may be some weak circumstantial evidence that they developed it... and not any other future corporation anywhere else that distributed the tech worldwide. Such as to not-San Francisco.
I wasted your time haha