I changed my location but I'm still playing with local players

LobbyGod points you to specific matchmaking servers in a different country only while matchmaking is going on.

As part of its algorithm, the SBMM appears to use the country and time of day as a factor to determine what difficulty of lobby it places you in (that's why we say to always pick a country that's currently at night!).

As a result, you aren't playing in another location. You're playing in the same location, you're just being made to look as though you're from another country during matchmaking to confuse the SBMM into placing you into easier lobbies. That's how we keep our lobbies low ping and sweat free.