Couldn't that 'hidden variable' be just another dimension? So while those particles might have been separated in space by a large distance, on that fifth dimension they haven't moved and are still sitting side by side.
The distance between two points is basically just the Pythagorean theorem: x^2 + y^2 + z^2. If you have extra dimensions, you just add more terms to this. Now, if you know that e.g. x is very large then that puts a lower bound on the distance: Distance^2 = x^2 + y^2 + z^2 + ... > x^2. In other words, if x is large there's no way that the two particles are still somehow close together.
(My terminology here is largely wrong; this is not my field. Perhaps an expert can correct me.)