i was playing with my friend(who was lagging) and he said he saw me running into the side of a building constantly, so i told me to shot at me. he shot and killed me even tho i was a good 1 or 2 minute run from where he shot me, i showed him where my body was and he said it wasnt even close to where he shot me.
we were the only ones on the server.
I noticed this as well while playing with a friend tonight. I got a bug where every item and player stays frozen in place when I log in. Walked up to where my buddy was on my screen, punched him in the face, and he went uncuncious, even though he was a few rooms away. Seems like the client has a wee bit too much power in this game. Very exploitable.
On a side note, fiddling around with Windows Fucking-piece-of-shit Firewall seemed to fix those issues for me. Or it fixed itself by pure coincidence. Hard to tell.