Are there compressible liquids? I'm seeing the whole thing bounce like the layers are compressing.
This is a common and difficult problem when simulating fluids using particles. It's possible to simulate using a grid instead, and that computes pressure very precisely, but it has a downside of adding inaccurate viscosity. And there are tricks that combine both approaches to balance out the errors.
There are also some large density ratios between the materials which further increased the difficulty, and would also increase the number of pressure projection iterations on a grid. I tried to simulate buoyancy without cheating (e.g. giving different materials different acceleration to gravity)