The x key bind says closest enemy target. Then why is it that it wants to target something 4000 plus meters away from you when there are three others shooting you? Also the target last hostile never works. They can be shooting you and press that no target.

CWRM Ostan-Ra Kosha

Target last hostile only works on the last ship to have damaged you. If they're shooting but haven't hit you, it won't work.

x will target the nearest ship to you that is red on your radar (assumed hostile).

There are some shortcomings of this targeting system, but most of them revolve around the shortcomings of the IFF system, since it can't tell always who is hostile toward you and who is not - it just takes its best guess based on faction standings, until you get shot.

I usually use the z bind to target closest hostile to front, or b/toplist if they're green on radar.