> The first empty cell could take the new data since it’s empty, but since 4 just got kicked out from the cell above, this empty cell gets the 4 instead
These are incompatible. The result in cell 3 is dependent on the result of cell 2 (and so on up the chain of cells).
Therefore, the steps have to run in order, making this O(n) just for adding one item to the set.
The end goal might still be possible, but I don't see how this can work.