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This study examines international physics teams that competed at a two-day academic programming competition (i.e., hackathon). Socially-shared emotion regulation strategies and their effects on team coordination mechanisms (namely, mutual trust and shared mental models) were examined using multimodal data (team interaction videos, interview data, and questionnaires) in 17 teams of 2-5 members (N=48). Using a mixed methods analysis, the challenges teams faced were identified and classified into four categories of cognitive, motivational, emotional, and behavioural challenges. Results demonstrated that teams whose members applied more socially-shared emotion regulation strategies demonstrated higher levels of (a) mutual trust, and (b) shared mental models at challenging moments. Findings have implications for enhancing team performance in teams with coordination breakdowns within challenging settings.