The cheat is manipulating a connection to their network to cause the glitch. It is not part of the game design. You aren't fighting anything in the game at that point. You are fighting the plug boss, but getting stuff as if you fought Crota.
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But then thats a fault in the game. Because one can very well just say that they disconnected during that exact moment or even the notorious "firefly" error code, which would then make it even more of Bungie's fault. Either way if there was no exploit then cheese wouldnt exist. No one hacked or modified the game to cause this exploit, Bungie released the gaming WITH this exploit AVAILABLE.