Source = Xbox Games, News & Reviews | GamesRadar+
The legend of the headless horesman is a fable that’s been passed down through the generations. That myth took on new life with Halo 4 when a group of modders was able to lop the heads off of Spartans in the game’s multiplayer, resulting in creepy and tough to hit competition.
The strange glitch, caught on the in-game camera by one player, is reportedly only able to be pulled off with a modded Xbox 360. All of the armor is removed, and apparently since heads and faces aren’t actually rendered for the player-created Spartan soldiers in multiplayer, this means the characters become headless automatons. Fortunately, even though the hack makes it appear as if these headless abominations aren’t capable of being shot in the face, Microsoft claims otherwise.
"We are aware of the issue and have already taken action to identify and ban the accounts of these modders and cheaters," a Microsoft spokesperson told Kotaku. "We want players to know that while the mod makes a player’s head and armor appear to be invisible, the hit boxes are still intact, so competing players can still defeat them as usual. While the problem was very isolated, we will continue to diligently identify and take action against all offenders."
For now, it appears the mystery of the Headless Halos has been solved. They would have gotten away with it too if it wasn’t for you darn kids. Luckily, nobody likes a cheater, no matter how cool the cheat happens to be.
Interesting…not seen MS or 343i say anything here in the forums despite multiple reporting of such “modders”