I am trying to numerically solve Schrödinger's equation with Cayley's expansion ($\hbar=1$) $$\psi(x,t+\Delta t)=e^{-i H\Delta t}\psi(x,t)\approx\frac{1-\frac{1}{2}i H\Delta t}{1+\frac{1}{2}i H\Delta t}\psi(x,t)$$ and second order finite difference approximation for space derivative $\psi''(x)\approx\frac{\psi_{j+1}^n-2\psi_j^n+\psi_{j-1}^n}{\Delta x^2}$, as described in Numerical Recipes.
The Hamiltonian is that of one-dimensional harmonic oscillator ($m=1$): $H=\frac{\partial^2}{\partial x^2}+\frac{1}{2}kx^2$.
What i end up computing is this system of linear equations with a 3-band matrix at every time step: $$(1+\frac{1}{2}iH\Delta t)\psi_j^{n+1}=(1+\frac{1}{2}iH\Delta t)^*\psi_j^n$$ or explicitly $${\boldsymbol A}{\boldsymbol \Psi}^{n+1}={\boldsymbol A}^*{\boldsymbol \Psi}^n\;,$$ where the elements on the main diagonal of ${\boldsymbol A}$ are $d_j=1+\frac{i\Delta t}{2m\Delta x^2}+\frac{i\Delta t}{4}x_j^2$ and the elements on the upper and lower diagonals are $a=-\frac{i\Delta t}{4m\Delta x^2}$.
For the initial condition i choose the coherent state, for which there is a known analytical solution. While trying to propagate the wavefunction over few periods of oscillation, the wavefunction gets distorted. When timestep is smaller, the distortions appear later. I am wondering what is the reason for this process, if it has to do with the Courant condition and if there is a known relation between the size of timestep and start of these distortions.
Here is a video of propagation.