At a certain distance it will literally do no damage. I have the same issue with my Universal Remote
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So you agree that there is a bug and destiny needs to fix that?
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Not a bug, it's intentional
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Those were perfect range shots for any shotgun. the hip fire circle was red. All three are hits on targets, it sent no pellets. It is not intentional, it is not working correctly. If they had a reduced range you would get collateral aka die from your own blast like a rocket launcher.
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That's not how it works. At a certain range, there is no damage. The damage drop off happens. And it is intentional. Just because it doesn't work the way you want it, doesn't mean its broken. Have you also considered netcode lag too?