Flight Instructor reported an NMAC with another aircraft in the traffic pattern at JYO airport with remote (Virtual) Tower.

Narrative

I was conducting flight training in the pattern at JYO. The pattern was extremely busy. The Tower instructed us to make left traffic for Runway 17 and upon reaching the downwind asked us to make a right 360 to rejoin the left downwind for spacing. Approximately halfway through the right turn; the Pilot of Aircraft Y was instructed to go around. The Pilot asked if he was to make left or right traffic and his call went unanswered. The Tower instructed Aircraft Y to make left traffic and to delay their crosswind turn however the Pilot immediately turned; accelerated to a fast speed; and climbed into the left downwind for Runway 17; which placed him into direct conflict with me as we were completing the 360 turn to rejoin the left downwind. I made visual contact with Aircraft Y and determined that a collision was imminent. I took the controls from my student and took evasive action. It appeared that the pilot of Aircraft Y did not have visual contact with my aircraft until I took evasive action. I informed the Tower that a near mid-air collision occurred and I requested to speak with them following the flight.I called the Tower by phone after the flight and spoke with the Controller who was on duty at the time. He stated that:- the incident was his fault- he lost situational awareness the turn we were instructed to make- I did nothing wrong nor contributed to the incident in any wayHe also said there is a blind spot on the east side of the airport that prevents them from seeing traffic in that spot. The Tower is a 'remote tower' where the Controllers view traffic through video screens via a camera at the airport. He said that the Tower facility is due to receive a radar feed 'in a few weeks' and this will help.The pilot of Aircraft Y contributed to the incident by failing to see and avoid and flying at a speed well above 'normal' for a traffic pattern.This is the second near mid-air collision I've experienced at this facility within the last 3 weeks. In the other incident; the Controller also admitted 100% fault due to a loss of situational awareness on the east side of the airport.I've been flying at this airport for years and we are as busy as we have ever been; with five flight schools on the field. I believe that we are headed for a serious safety problem if the following items are not addressed:1. JYO Tower must receive a radar display immediately. Lacking this data is contributing to a serious safety issues2. JYO Tower's 'blind' spot on the east side of the field must be investigated and corrected. If the remote Tower cannot see an area of the traffic pattern; the remote Tower should not have been certified3. JYO Tower is often staffed with only one Controller. Often times pilots must wait to read back instructions because the Tower Controller is reading an IFR clearance because he is also working the ground position. This is a serious safety issue. The Tower must be staffed with three controllers; without exception; at all times