The bug

Simply put, pressing the TAB key brings up a list of players.
Drops that appear at the feet of multiple players at the same time have a 100% chance of being picked up first by the first player on that list.

This seems to very much affect the outcome in a PVP environment where multiple players are picking up loot on the ground in order to pick it up, and then it will always be picked up by certain people. There is no randomness.

How to reproduce

1. Stand very close to another player.
2. Drop an item between you and the other player, and observe who picks it up. Repeat.

Observed behavior

Every item is picked up by the same player.

Expected behavior

Each item should be picked up by the player who is closest to it.