Phased or is it a hack?

Ok so I am outside ul'dah mining lvl 5 or 10 nodes and I see people walking around inside the mountain area mining as well. I know we have a stealth but this is different they are inside the rock or boulder etc.. just wondering if they are out of phase due to quest or etc, I have never seen it before and it was more than one person it was a few. So Glitch, Hack or Phase?

Sounds like the teleport hack that a lot of gathering bots are using. They'll teleport between possible gathering node sites in the area, gathering at the ones that are active, remaining stealthed the whole time to avoid any hostile mobs. I've seen the teleport put them inside the nearby rocks/cliff walls for mining nodes before.

Report them for hacking when you see this and move on. Unfortunately, there's nothing more you can do about it.