bloomendale

It seems like you need to swap tangent vectors in cross node.
And use length of the transformed texture vector as displace amount and don't touch P in Displace node.

Dive inside Fluid Source -> Points From Volume SOP -> Group SOP which groups particles inside sdf volume (raw_volume_by_sdf) and change “Iso surface” parameter from 0 to something like 0.0001

tamte
@bloomendale -be careful about stripping of features you think are not necessary, just because it works on simple grid

foreach is not important in this simple case, but for example sami.tawil had in his original scene clustering turned on, so the piece ids will no longer match points and therefore some kind of reindexing or computing new points is needed

and since you stripped up-vector completely, your pieces will be flipping in cases beyond flat grid deforming in Y, so it's better to add some proper rotation computation, polyframe is just a mean to get tangent vector based on topology which can be used as up vector for cases like this

Absolutely. My example is only for initial setup.
another specifications - different setup)