In the yeti boxing bonus level When you start the first round of the 3 round fight pause the game and exit the area, then come back in. It will skip to round 2. Repeat the exploit again and it will skip you to round 3. You’ll still have to fight the yeti, all I did was hit him once and then avoid his attacks.

Is this exploit known about? If it is, is it used in 117 percent speed runs? If not why?

I was able able to do this on both psp and a PSone

The goal for 117% runs is to knock him out in the first round anyway, so skipping to round 3 and avoiding for a minute wouldn't be faster. It could be a more consistent method to prevent it from taking 1:40+ though, so it may have a use depending on how long it takes between rounds. I did not know about this exploit but it wouldn't be the optimal method.