When you believe someone is cheating the best thing you can do is use the in-game Report Player function: https://www.bungie.net/en/Help/Article/12960
Additionally, you may report suspected cheaters here: https://www.bungie.net/en/Help/Troubleshoot?oid=13967
Bungie actively investigates network manipulation and other forms of cheating. They will continue to monitor game performance for people abusing the system and enforce their policies. They regularly address players who they have confirmed are cheating in one form or another. Rest assured that they will continue to do so.
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If this was the case how come there are still so many people doing it? If this was the case how come YouTube videos pop up every weekend from people showing it? What about the red bar problem? What year is it in destiny and they can find a way to charge people for vanity items but can't fix the connection issue?
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If only that actually worked.....