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"Oh, they have more experience with lagging so it's an advantage."
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I never said that. I said that they can use a more consistent strategy knowing full well that their latency is going to be the main factor of the spar. Someone with low latency is going to have to determine whether that person lags and how much.
Another alternative to segregation might be to display the latency to each person in the spar so there's something to help the lower latency players in evaluating their strategy during the fight.