I have a pretty good grasp on C2's lighting system but I can't figure this out. This really is impressive-looking, in a clean, simple way! I guess what I'm saying is BUMP.
...hmmm... unless the player/flashlight has a shadow light on it, and is only casting "shadows" on the flashlight beam, through some sort of layer blending mode. That would make sense. I might throw something together sometime to try it.