HD Remix Netcode - A Way To Cheat?

I've been thinking about this since I have played recently.  I am in Japan, but matches with friends such as T3R Dictator from California, and other American players have lag... but not noticeably so.

However, I have noticed that a lot of the random scoreboard matches are just unplayable these days.  Projectiles come from out of nowhere, and characters seem to teleport like it's Rainbow Edition.  A lot of these teleporting laggy players also go for a jump tick grab every time on wakeup as well, a technique that would be nuts in real life.  

Kind of makes me wonder if they are manipulating their connection to win meaningless ranking points.  It happens in Player match too, and I've never had an issue like that arise until recently.  It's very frustrating because until the CE patch for SFIV, HD Remix supposedly had the better netcode, but since the way it handles lag leads to a lot of graphical nonsense (rewinds, teleporting, quick movement, frame skipping etc) I am thinking the other way around.  

Especially when it seems like players are doing this intentionally.  Some when I beat them the first round ez will seem to increase in lag for no foreseeable reason... do they just open up BitTorrent or something to get that extra "edge?"  I know it used to happen in games like Subspace, Counter Strike and probably still happens to this day in games, though now I can't say what I'd rather have... graphical goofiness or input lag.