It's factions, they didn't hack items. These people were just raiding or doing something else and spilled items all over the ground. Nobody that I know of can hack items into the factions server. To be honest, it was probably his fault...
TURN YOUR GRAPHICS TO FAST AND MAKE YOUR PARTICLES NONE/LOW AND IF THAT DOESNT HELP, SEE IF HUZINI HAS A NO-RENDER MOD, IF IT DOES, USE IT!