This is not true.

You have problems coming out from this issue both in matsuri and in arena and in plundering.

If massive amounts of people are induced in level freezing it's very easy in matsuri to be matched with somebody lower level than you that may be way stronger than you after you lost a battle, thing that theoretically should happen very rarely unless you are in the levels 95+ or unless you wait for 60+ seconds.

The same can be said for Ranked Arena where you can't be matched with people outside the range of +/- 15 levels and for plundering, where, if many people are induced in level freezing you are induced to somehow do it too even if you would not want to do it because otherwise could be you have none to plunder.