Ive got this qdm (quadtree raytracing) implementation that works on 6 displacement maps (one for each face direction) inside a bounding box. (with instancing)
I could instance as many bounding boxes as id want, (as they are only 8 points each) and raytrace the insides, only problem is - you cant have them penetrating each other because there is no way to detect inner intersections as they are all raytraced independantly.
Is there any way around this problem? or is it just simply impossible.