There are two ways, they can control the “splits” (when time is cut off at a specific point) manually themselves, or:
They can use an auto-splitter. With a program like Livesplit you can write a script that looks at particular areas of a programs memory (a game, or an emulator) and based on changes to particular areas of memory you can automatically trigger a split.
You can find more info about autosplitters here: https://github.com/LiveSplit/LiveSplit.AutoSplitters/blob/master/README.md
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