This is something the phone of each user itself could do. All that is necessary is for the app to generate a random offset for the latitude and another one for the longitude at startup then report their location + constant offset instead of their actual location to Tinder.
Now the worst thing that will happen is someone triangulates a point say, 1/4 mile away from you.
Now the worst thing that will happen is someone triangulates a point say, 1/4 mile away from you.