LMAO! There are no MODDERS on Xbox or PS4. Those people use exploits and/or glitches that exist in the game.
The person you encountered was in a glitch where he was phased out to the lobby. You mostly can't interact with others when in this state. It's mainly used to hunt and fish without getting grieved by other players. R* will probably patch it before they fix the unsalable pelts. LOL!