If you can spare 10 minutes, I think this is something everyone who participates in the competitive game should see. Skip to 3:11 for the actual occurrence if you wish.
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I appreciate your frustration in this and I would be angry too. Simply report them as they were either doing some form of network manipulation or all of you were experiencing serious host lag (wish it would actually show you which player was actual host). Posting this video constitutes naming and shaming and as such; they will not get in trouble but you will. I would remove the video, ensure you reported them in game, and use the tool for reporting on the site here and simply move on with life.