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I’d be curious how well that works. The issue I see is that at some point, the server has to correct the player, otherwise the client and server will be out of sync and you’ll start getting really nasty errors. If that code really is just “trusting” the client for that small time, broadcasts their movement, and then goes back to correcting it - that’s fine. If it just pauses applying correction and instead builds up a queue of movement deltas to apply, then you’d get crazy snapping.
Interesting find though.