Just to jump in and give my 2-cents.
Back when I played Maple Story for a little while there was a hack very similar to what is being described. You could see on the mini map that someone was in the same area as you, but usually their character is positioned out of the physical map. You'd walk around and notice that the enemies would appear and then suddenly be damaged / die.
Sometimes they would be visible though. They were making the motions of attacking but it would hit everything on the map.
Anyways. There would be tons of drops littered on the floor, but sometimes they have it so they can pick up the items as well.
Since both games are gameguard, I'm assuming it's something similar.
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