So there were 3 of us playing together last night, and no matter what server we tried, one of my buds was always invisible to us. He would rubber band pretty badly on my screen and whenever he went to stop and kneel down, his toon would look to us as if it was a few meters further up and running in one place. He was able to do damage to both of us when he looked to be too far away to do anything. He could walk around us in town and we were completely unable to touch him. If you got to where his toon was, any actions your try to perform will tell you he was too far away. He is not a hacker, just a slower connection that the 2 of us, but this is a good candidate for why all the random "Your Dead" screens people have received including myself.