In my experience, cheaters are virtually non-existent in PVP (and probably co-op too). That video you linked was uploaded shortly after the Dec release, and there has already been several ban waves since then. Odds are that player and players using that cheat are already banned.
In the future, it's best to privately report cheats & exploits using this form: https://easy.ac/support/sandstorm/contact/report/
If you're reporting a player you've played with, please include their playername & the Replay ID of the round. If there are specific timestamps, that would help too.