Yeahh, I can't be sure, but it feels like they're using an algorithm that was common in other MOBAs (over 50 and under 50) being matched to produce a close to 50% match probability in the interest of fairness.
Unfortunately huge discrepancies arise when say you have someone with an early 60% winrate being matched wit someone 40% in order to account for the difference, but, a 20% difference is substantial and I'm not trying to be a dick, but players like that are practically uncarriable by all but maybe Faker.
If they matched players with an above 50% winrate and used the positive difference I think this would work really well at matching higher division brackets more consistently. However the thing to keep in mind is that the difference between an established say 51%, 52% and 53%+ winrate after 1000+ games in true elo, this can come out to an enormous difference in skill matchups.
/u/nextdoormmr is one of the devs currently working on matchmaking, his knowledge of matchmaking systems almost certainly dwarfs ours after watching some of his talks. I have a lot of faith in him to get matchmaking to the place it needs to be, I'd just like it if they gave us more transparency with respect to what the system is currently doing and whether it's an accurate reflection of the current design vision. Long time MOBA players love insight into stuff like this because it helps us tweak our performance based on how we understand what the system is paying attention to in order to optimize our MMR.
Also I know he's on vacation, but at some point if he reads this, I wonder what he would think of using macro touchstones. It's probably an incredible amount of work and would need a different engine, but what if you used say key points in a game as a way of generating micro/macro points that factor into your overall MMR with respect to individual performance in games. I like to theorycraft so even if my idea is totally shit here, I'd love to get your insight on more novel ways to improve matchmaking in 5s, even if it isn't currently planned.