How does server connection/matchmaking work?

Pretty much from my findings this game uses a PEER TO PEER match making system with one player selected as the host. However here's the catch, unlike other games that use Peer to peer matchmaking and hosted player servers, this game uses what we call "Server Side Hit Detection" which means - unless the server thinks you are hitting the target (aka the hosts server) you won't be, regardless of if you actually are hitting the target on your screen. Most other games use "client side" hit detection, meaning even if you have high latency / ping your shots should still upload and register if you are hitting them on your screen. The issue here is that with server side hit detection, us Australians are basically seeing the game a few seconds behind. We're basically shooting at a guys location he was at, but only updating on our screen as of now. So that explains the ghost shots, and it also explains how other fighters have near insane amounts of HP, to the point where they are basically immune. 

I'm quite a decent pilot, I've played a lot of Elite Dangerous, Flight Sims and other things, I consider myself above average when it comes to dog fighting. Some games I'm going 18-0, 16-1, 12-0 KD/R. I suspect this is when I'm the host, because I'm able to clean up the entire server with ease. Then the game will switch to another round, I'm not the host... I literally CANNOT do damage to anything, I have to use mines and fly in circles in hopes people chase me so I can ping my team to come and kill them. It's not possible to play like this any longer. The developers MUST come forward and say something.