I'll provide a quick explanation for anyone who thinks the shot should have connected.
1) The screenshots are obviously from demo playback, so the shock beam that you see is the server's shock beam. This means kud's shock beam that he originally saw during live gameplay came out earlier, which is the beam the hit registration is based on. Of course this also means that at the time of the shot, edge wasn't as close to the crosshair as depicted in the first screenshot.
2) Edge was in the middle of a forward dodge. This causes the player model to appear to be outside of the hitbox since the hitbox is only a simple collision cylinder (taller than it is wide) that is unable to rotate with the player model. (Thanks Epic.) I've considered a few different solutions for this issue but there are bigger fish to fry at the moment.
Rough estimate of the hitbox:
3) All that matters with regards to hit registration is the explosion. In this instance you see it on the wall behind edge. The shock beam is just a delayed effect and has no bearing on anything, which is why it will sometimes appear to pass through player models when your explosion lands behind them.