There is no way Tinder can see your location always. Tinder will update your location and check for matches around you only when you open the app and start swiping. In short, if a persons location changes, they have been on the app.
Is Tinder location broken?
If only some of your potential matches are far away, there are a few reasons why this might be: Passport - They may be using the Passport feature to check out potential matches in your current location. Only Tinder subscribers can change their location.
How does Tinder location work?
Tinder Passport does show distance, so your matches will be able to see how far away you are. You can change your location as often as you like, but your profile may be visible to matches youve “liked” for up to 24 hours after youre no longer visible in that location.