Ok.  I looked at the demo and you're right- this doesn't look like a connection issue at all.  Not sure what happened but something glitched.  It was right after you got off your hoverboard.  Looks like you just stopped sending location updates to the server or the server was ignoring it.  When you fired your flak cannon it was firing at a different location then where your character was.  If it happens again let me know.

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