Blizzhackers

I am hoping to find some general direction on figuring out how a hack works for an online game.

I am not asking for freebies just some hints to keep me going in the right direction.

The hack:
This game has a client. It appears to run on multiple servers. ie. when the players character changes maps it is now in a seperate area and has some limitations for interaction with players on other maps.

The hack uses two VM windows both running the game with one character in each VM on the same server. The character on VM1 moves to another map, in the transition VM1 appears on the new map but VM2 character changes to be the character VM1 on the first map. Now there is character VM1 on a new server, and VM2 is the VM1 character. There is now two of the same character which allows for duplication of non-id tagged items such as money. (VM2 machine drops money logs off - VM1 returns to initial map and picks up money). [there is a video showing the process but its in a language I don't know but I could post it for clarification - I've been told its Chinese]

It appears that the packets from VM1 are being redirected to VM2 when the map transition happens. I have been looking at ip spoofing for answers, is this the right direction to be searching?