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This occurs in online gaming when latency is relatively high. Players (or yourself) will appear to move in one direction, and then suddenly be teleported back several feet where they once were a few seconds ago.

This can be extremely annoying in twitch-based online games such as first person shooters, as it will hinder one's aiming and shooting. Rubberbanding also plagues MMOs, particularily in extremely filled servers with poor hardware configurations. While it isn't as damaging in an MMO environment, rubberbanding still takes away from the overall gaming experience and if at all possible, should be avoided.
CS-Sniper: WTF!!! server is rubberbanding pPLaYERS I cANT SHOOT SH*T... OMfg I JUST GOt HEADSHOTTED WTF OMG11!!!
by Stephen A. January 02, 2006
When an internet connection (specifically in online gaming) is lagging to the point that one's character will jump from one place to another, as though it were being snapped around with a rubber band.
Joe: Dude, I think that guy is hacking. He's teleporting!

Adam: Nah, his ping's 834. He's just Rubber Banding.
by Althalin March 26, 2010
When losing opponents are given an unfair advantage in a video game (most commonly found in racing games)
I can't win any races in Mario Kart because there's so much rubber banding.
by Ian H June 24, 2008
A type of "Self Harm" where instead of cutting, the person flicks a rubberband on their wrist.
1: "Do you cut?"

2: "No, I do rubber banding."
by unknown_waffle_eater March 06, 2013