Requesting Pro tip: How does the game handles lag?
If game looses signal on your side each unit follows it's current trajectory till it receives data packet with new position, speed, rotation (and many other) informations. This sometimes may lead to large teleporting, but sometimes you won't notice any difference (lag when all you see is slowly moving assault mech is impossible to notice, lag when brawling or AA is a hell).
On the other side - server and other players - game do similar thing - keeps remember your last speed and rotation simulating your movement as if you wouldn't change anything. This command has priority, so sometimes it happens that you cannot control the mech, but you see other moving (packets with other people movement have priority over your commands - that's also because people's download speed is higher than upload, so it's easier to get updated others position than send your position update to the server).
How it's calculated on the damage - I don't know... my guess would be that server receives packets with everyone's movement and orders, if lag occurs for player A the server approximates position basing on available data and - when someone fires at player A - inflicts the damage to approximated signature of moving unit - so lagger is in disadvantage till the moment host receives new packet of data and "teleports" the unit to his new, proper location, giving player A an advantage. Thanks to this player doesn't see himself being moved all around the map, but only other players do for him, and both - lagging player and fine player have their moments of advantage.
While both players have lags the server receives data packets, approximates positions basing on data, and inflicts damage from weapons fired during the approximation of another player - making it very so it's hard to hit another because noone really knows when the "teleport" moment will occur... therefore: never duel with player who has high ping while having high ping yourself - it becomes random.org game.
