Do uploaded files all go into one directory / folder?

Files are uploaded to this directory (1X):

All files will be downloaded to one directory?
Even if there are 1,000,000?
If yes, then can use this scheme (or similar):

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No I don’t think so but @zogstrip can confirm.

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Nope, that is not true. We construct a tree that grows when the number of uploads grows while keeping a maximum of 1000 images per leaf directory.