I would guess that NYGM uses a delayed-sound mod. The further away from the target you are the longer the sound should take to reach you. The speed of sound at sea level is about 340 m/s, so even at 500 meters the sound of a torpedo explosion should take almost two seconds to reach you. At 1000 meters it's about three seconds.
SH3 is only capable of having one delay setting, so what you have is probably a good compromise. SH4 actually has varying delays.
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