The handicap given to CPUs in racing video games when one or more human players is ahead. This often plagues the less experienced human player, as they will be passed up by CPUs moving absurdly fast in an effort to maintain close proximity to the farther ahead human player.
Jordan is always so far ahead in Mario Kart that I need stars AND mushrooms just to match the speed that rubber-banding gives to the last place CPU.
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.
When a person who generally has attachment issues pulls back from another person either after getting close to them or spending a large amount of time with them. Usually the time spent away from the person must be equal or greater to the time spent with them. The more time/the closer they get, the longer they'll pull away. Generally they will come back after being pulled away (like a rubber band) but will eventually pull back again in the future.
Person 1: Hey have you heard from Rick since y'all went out?
Person 2: No. We had a really good time but he has a habit of rubber banding.