I've been reading this article from Valve that seems to explain the architecture of their multiplayer system. It seems they delay rendering by a couple ticks on the client so they can handle dropped packets, but they also send packets as "delta snapshots" (the difference between two adjacent states).
Suppose we have times A, B, C, and the client is correct at time A but drops the packet at B, and then receives the one at C. How can it correctly deduce the state at time C? The packet at C only tells (I think) the delta between states B and C, and the client only knows the state at A. What am I missing here?