Hmm, but tell me this.
Let's say you're in normal space, somewhere near Earth.
There are 3 stations nearby, that you could visit at normal speed if you wanted to.
How does instancing work then?
Say you went to A.Lincoln station, took you 30-45mins to arrive, and there were some players.
Then you redirect to M. Gorbachev station.
Who will you see there, if there was no instancing in the meanwhile ?
Instances are decided by "bubbles" around your ship (or POIs). If two ships "bubbles" intersect the matchmaking server (which always keeps track of everyones position in the galaxy) will try to match you two (or more people) together. In theory you could drop out in the middle of nowhere and if someone else by pure chance happened to be at that exact location then you would be matched together and see each other. This worked even back in Alpha 2 when people eventually realized that two of the battle scenarios we could choose was positioned rather close to each other. People then managed to start of in one scenario each and meet up in the middle after about 10 minutes of flying.
So in your scenario you would be connected to the station until you reached a certain distance away from it where you would drop that connection. If someone was flying alongside you then you would still stay connected to them. As you eventually approached the other station you would at a certain distance be matched against other players there.
Please don't ask me for sources for this since they are spread out all over the place. I could find them...but I don't want to spend my entire evening doing it!