I'm from Australia I ALWAYS have 230-300 ping while sparring I don't lag at all.
I have no delay whatsoever (on tie hits I always win the match tho =O idk y) compared to someone like Nell.
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When someone gets to >400ms, it starts to become a major unfair advantage.
When someone gets to >500ms, it starts to become ridiculous.
At 500ms, someone with 0ms can hit the entirety of that player's hitbox and that player can get away clean (if moving away from their opponent). Based on my experience hitting someone twice after being removed from the spar area for losing, they'd have to have had something like 6,000ms ping minimum based on how far away from them I had to slash to even register a hit.
0.5tiles / 50ms = speed
500ms * speed = 5tiles = 2.5hitboxes
A player's hitbox, I'm assuming based on a player's blocking area, is 2x2tiles.