If I am correctly remembering this, after Matt brings up the fact, he knows his father and that his father is still alive Ralph's come back is to blurt out something about DNA evidence. I guess Ralph is suggesting that while he has forensic evidence of who his father is, Matt can't be as sure as him and therefore there is an outside chance that Matt's dad isn't really his dad biologically. As a retort, it's pretty low quality and doesn't really hit home - but it got me thinking at the time: Why did Ralph have a test to find out if Ronnie is indeed his father - this is not normal.
There are three explanations, for instance I know in the US they would use paternal and sibling DNA from public data bases to convict murderers and rapists etc. It's not inconceivable that this could be how this connection was made between them, I don't know if this is the case but perhaps if they were both incarcerated and had their DNA taken, they could have made the connection that way. Although if this was the case then we would surely have found the public records of Ronnie Ralph's crimes. Therefore, I would rule these possibilities out.
Second, maybe they both put their DNA into one of these databases to look back at their family tree and it spat out a connection between the two. I think this is a possibility, but do I think Ralph is the kind of person who would waste enough money to buy 6 maybe 7 bottles of makers mark on this? No, probably not.
Third, and I think the most likely: Ronnie Ralph denied paternity, and either a voluntary or court ordered paternity test took place at some point so as to establish whether he was Ralph's father. It confirmed that he was indeed Ralph's father and hence he now throws that out at Matt as if it is some sort of win.
The third option would also explain what he did to Ralph, I think he abandoned Ralph and his mother and denied paternity. I think this probably occurred between his late childhood and his early adult years. Hence, why it hurt him so badly. I don't have any experience of parental abandonment, so feel free to say I am completely incorrect here if you know better, but I would imagine it's more painful when you are able to understand what a complete piece of shit your father is and you can't be protected from the emotional impact anymore.
So I think, his dad abandoned him. Which is what it appears Ralph will end up doing with the demon baby - which while sad in a sense, is probably a good thing long term for all involved, except Ralph.