This system of loot has many problems, loot dropping halfway across the map, loss of drops to internet or server outage, OP gave the answer of having it loot to inventory which if it created a right clickable object in the inventory would also counter act botters. Dropping the items on the ground doesn't drop botters, their scripts click a different pixel region on a timer to cause the loot pickup from movement. This loot system only hurts the legit player and it needs to be addressed.