People've got it hacked all right, there's no question. Blocking and countering can be done pretty quickly (which I trust they will fix because it promotes block spamming, and yes that's bad).
However, I've seen people teleport 10+ times consecutively right across the map, and I'm sorry, but that just isn't possible. Usually you run out of energy after about 5 or so. I've also seen some guys using Cell with a rather strange special beam cannon. They can fire it pretty fast. Now, that's possible if you don't charge it, but this was a one-hit-killer every time. Sound strange to you?
There's also an autoaim script out. I haven't seen the script itself, so I can't really say how it works, but it's a fact that it's out there. I don't know if it works for ki attacks, but it does work for melee. It might use it on whoever you're locked onto, I don't know. Of course, that causes innumerable problems. The "all melee, no skill" type can use that to teleport around and almost instantly be right on someone's ass. Some people can do that pretty fast as it is, but it's not hard to tell an autoaim script when you run into one.
I've also seen the people killing themselves and gaining ki. There were these 2 guys in a game I was in, and they would switch characters and then kill themselves about 25 times in about a minute and a half (pretty fast, probably got a key bound to suicide) and then immediately ascend.
One other thing I've seen is someone that gets on the spectator team and looks like a teammate to both sides, but he can kill anyone. That was particularly NOT FUN. There was this one guy, M.Piccolo... He did that, and he was going around with God knows what other exploits, and he was killing everyone on both sides of this team game.
It sucks that people have to ruin the game for everyone else like that, eh? But, you can rest assured that they have no skill without their little extras.