RICHTER is a hybrid P2P-CDN architecture for low latency live video streaming that employs virtualized edge servers. It addresses challenges in CDN- and HAS-based streaming by leveraging characteristics of P2P networks and CDN systems. RICHTER utilizes peers' resources through a distributed transcoding approach in addition to video transmission. Virtual tracker servers located near base stations direct clients' requests and respond based on fetching content from peers, edge servers, CDN servers or origin server depending on latency. An optimization problem and heuristic approach are proposed to guide system operation and answer research questions on optimal placement, response approach, sufficient resources and seeder replacement.