Oh, nice. Third party implementations of Nanite playback. Nanite is a very clever representation of graphics meshes. They're directed acyclic graphs rather than trees. Repetition is a link, not a copy. It's recursive; meshes can share submeshes, which in turn can share submeshes, all the way down. It's also set up for within-mesh level of detail support, so the submeshes drop out when they're small enough. So you can…
The logic behind nanite as I understood it was to keep the mesh accuracy at roughly 1 pixel precision. So for example, a low detail mesh can be used with coordinates rounded to just 10 bits (or whatever) if the resulting error is only about half a pixel when perspective projected onto the screen.
I vaguely remember the quantisation pulling double duty: not only does it reduce the data storage size it also helps the LOD generation because it snaps vertices to the same locations in space. The duplicates can then be eliminated.