Squad tournament matchmaking

Schwin

So trying to understand how this works, in for example the level 50-59 bracket you have a level 51 guy dominating even though he only has 3-4 chars over level 50, 3-4 stars, blue/green gear level, surrounded by 59 people, 6/7 stars in purple. Does it match you with people at your squad power level or is it supposed to be based on tournament standing?